Did you know that around the holidays is the perfect time for you to start or update your estate plans? It’s true! While you think back on the past year and all the changes that came with it, think about what could change in the coming year. You have to prepare yourself, your spouse, and your family for big changes, whether they be good or bad. Meet 2018 armed and ready with the proper estate plans! That being said, where do you start? Your first step is starting or updating your Will. Take note that a Will by itself may not be enough to lock your assets and wishes down. You will need other estate planning tools as well. For now, this blog will cover Wills. Please check back over the next few months as we add more estate planning topics!
Many spouses have similar or the same goals when it comes to estate planning. Simple estate plans often leave all of the assets to the other spouse. In these situations, it may be tempting to create a joint will with you and your spouse.
Joint wills sometimes save on expenses because you only pay for actually creating one will. However, what you gain in reduced costs can have negative long-term side effects for you, your spouse, or your beneficiaries. Instead, there are many benefits to creating separate wills for both you and your spouse.
Naming Separate Beneficiaries
Perhaps the most important benefit of creating two separate wills is that both spouses can name different individuals as their beneficiaries. Where certain goals diverge between spouses, it is important to lay out these separate considerations in each will. This is particularly true in situations where a spouse may have heirs from the first marriage, or he or she wants to leave assets to someone other than a child.
Separate Wills Allow for Adjustments
When you create a joint will with your spouse, you bind both parties to the agreement. However, these agreements may not be practical as one spouse may pass on long before the other. Joint wills do not allow for changes after one spouse has passed without going through many administrative challenges. That means that where family situations change, the surviving spouse will be unable to adjust his or her will.
Separate Probate Actions
When assets are in a joint will, they may be tied up until both spouses pass away. However, in a separate will, the assets are administered separately when one spouse passes. This allows beneficiaries to receive certain assets without waiting for both spouses to pass away. In addition, if there any disputes, they can be addressed with one will or the other when separate wills apply. In a joint will, some disputes may not be able to be settled until the surviving spouse passes away. Again, this can needlessly tie up assets for years.
Getting Help with Your Estate Plan
Although creating a joint will may seem like a good idea and a cost savings, it really may be more detrimental than beneficial in the long run. In fact, it may not be a cost savings in some circumstances because the estate planning attorney will still need to go through each individual’s assets and liabilities to determine the best estate plan for them.
Danilson Law, PLC can assist with your estate planning needs. Contact us today at 515 512 5500 for more information.
