If you listen to The Dave Ramsey Show for just one episode, it will become very apparent that he is very passionate about relaying the importance of having an estate plan.  An estate plan is when a person or couple creates a plan for what they want to happen to their estate when they die.  There are many different ways to plan for death, but Dave Ramsey and his team at Ramsey Solutions preferred the method of being a Will. 

What happens if you don’t have a Will?

So what happens when a person does not take the time to create their own estate plan? When this occurs, it’s called dying “Intestate.”  The good news is that the government has made an estate plan for you.  In this process, a judge will appoint an administrator who will work as a fiduciary in carrying out the court orders.  Unfortunately, in this situation, if a husband dies and leaves his wife behind with kids (or vice versa), a portion of his estate will be allocated to his wife and another portion will be left to his children.  This could result in a wife partially owning the house with her children.  As a prior Ramsey personality would say, “If we can’t trust the government to take care of the potholes in the roads, then why would we trust the government to take proper care of our estate.”

5 common types of Wills

There is also more than one type of Will; we will share a high-level overview of each kind below:

Holographic Will

This is a handwritten note that states what a person wants done with their estate upon their death.  When a person makes a holographic will, it must be signed and dated by the testator (the person who has passed). 

Nuncupative Wills

When a testator orally states how they want their estate to be distributed upon death.  This needs to be completed with sufficient witnesses however, it is not accepted in all states. 

Statutory Wills

This is when a person uses a licensed attorney to complete the will documents according to the laws of the state where the testator lives. 

Mutual/Reciprocal Wills

When a licensed attorney creates two identical wills for a couple. 

Joint Will

When two people use a licensed attorney to create the will where, at the death of the first person, the survivor is contractually bound by the will.   

Benefits and Drawbacks

The benefits of a will are that it gets what you want to happen on paper and leaves direction for your loved ones upon death.  One drawback to wills is Probate.

This is the legal process of distributing the assets according to the testator’s wishes.  This also means the testator’s will is a public document, and if an individual wants to know the will's wishes, they have access to it through the court. 

Because the will is already going through court, it makes the process easier to contest.  If a loved one feels they should have had a more considerable death benefit, they can say why they think their loved one was manipulated into providing someone else with their portion. 

However, the judge has the final say in what happens to the will.  If the judge thinks there are too many restrictions, it is too complicated, or the testator is manipulated, they can invalidate the will or award and proceed according to how they deem fair.  

Estate planning is a complicated process, and creating a will is one small option to prepare your estate properly when you or a loved one passes away.  At Whitaker-Myers Wealth Managers, we are partnered with Encore Estate Planning to help you develop a detailed plan for your assets. 

If you would like to talk about setting up a will or have questions about the starting process, contact your financial advisor to start this discussion.

Whitaker-Myers Wealth Managers is not a law firm and does not provide legal advice.