FIRST STEPS

For some of you, being a grandparent is “old hat”. Unfortunately, I have missed much of the last two years of grandparenting due to Covid. I look forward to spending as much time as possible spoiling my two granddaughters!

As we begin to take a look at some of the interesting estate planning issues, I thought it would be good to start with a very simple question, “Who needs a Will?” While a popular answer might be “everyone,” I am not quite so sure about that. Let’s begin our exploration of estate planning questions with what is a Will and why would someone need a Will, before addressing the answer to our first, simple question.

A Will is an instruction letter to a Court which states how the author of the Will wants her or his affairs resolved after her or his death. It is NOT a way of avoiding probate – it merely instructs a Court how to ensure the author’s direction on asset distribution and other decisions like who the guardian of one’s children should be.

So given that, why would someone need a Will? Well, certainly to direct asset distribution (if different from the distribution provisions under Tennessee’s intestacy laws, i.e., how property passes under the law if you don’t have a Will) or if you have minor children where you need to name a Guardian (the person with whom the child will reside until age 18).

One last thing: if you have assets which are either in joint name or have a beneficiary attached to the asset (like life insurance or an IRA), then a Will is irrelevant to the direction of where assets pass upon your death. In card lingo (and not political lingo): Beneficiary designation and joint ownership trumps Wills, not the other way around.

Thus, if you don’t have minor children, and if all of your assets are either in joint name or have a beneficiary, you may not need a Will!

I hope everyone’s summer is going well. We will keep blogging, but please send us your ideas on topics to address.

Pat