Few of us want to spend much time thinking about our death. That's probably why a 2007 Martindale-Hubbell survey showed that 55 percent of adult Americans do not have a will. A lot of us make the mistake of assuming that wills are only for people who have children or own real estate or have a lot of money. But if you have any property at all--money, real estate, possessions--or any minor children, you need a will, and you need to keep it up to date.
Details of Michael Jackson's will are not yet confirmed, but there's some speculation about the state of his estate. Many news reports claim he had hundreds of millions of dollars of debt. Some news reports say he had at least two wills and other news reports say he had no recent will.
Even celebrities and the very wealthy sometimes die without a will, or without a current will. When singer James Brown died in 2006, his family discovered that his will hadn't been updated since 2000. Unfortunately, he'd married and fathered a child after that last will was written. A long court battle ensued, and a settlement was only reached in May 2009.
The sad fact of the matter is that thousands of people die unexpectedly each and every day. You can use Michael Jackson's death as an opportunity to talk to your family members about their estate plans and your own. Among the factors to discuss:
- Do you have will? Is it up to date?
- Do your close family members know where to find a copy of your most recent will?
- Have there been any major events in your life since you last updated your will?
- Have you discussed your intentions with the people you've named to serve as the executor of your estate (sometimes known as a personal representative) and as guardian of your minor children?
What Happens if You Die Without a Will?A will allows you to distribute your property, after your death, in a very precise manner. If you die without a will, your property will be distributed according to a formula set by the state. State laws would generally require your estate to be distributed as follows:
- If you are single and have no children, your estate would be split evenly between your parents or between your siblings if your parents are dead
- If you are single with children, your estate would be split evenly among your children
- If you are married but have no children, your spouse would receive one-third to one-half of your estate and the remainder would be split evenly between your parents or your siblings, if your parents are dead
- If you are married with children, one-third to one-half of your estate would go to your spouse and the remainder would be split evenly between your children
The court will appoint an administrator to settle the estate. The administrator is responsible for carrying out the same responsibilities as an executor.
When Should You Update Your Will?As a rule of thumb, you should update your will every three to five years, or more frequently if you experience major life changes. Among the reasons to write a new will:
- Someone named in the original will has died
- Your marital status has changed since the will was written, and you're now married, divorced, remarried or widowed
- You had no children when the will was originally written and you're now a parent, or you have more children than when you originally drew up your will
- Your children are now all at least 18 years old
- You'd like to add or remove heirs
- You've acquired or disposed of a significant asset, such as a house or business
- You've changed your mind about how you'd like your assets to be distributed after your death
- The value of your estate has increased or decreased significantly
- You'd like to add or change the charities named in your will
- You've moved to a different state
- New laws have been passed that would affect your estate
- You'd like to change the people originally designated as guardians, trustees or personal representatives
- A witness to your original will has died or can't be located
- It's been more than five years since an attorney last reviewed your will
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