In this episode, Tim will explain when a Simple Will is sufficient, and why some people choose more advanced planning.
Podcast transcript:
WRVO Producer Mark Lavonier:
This podcast is part of the series Estate Planning Pro Tips, hosted by attorney Tim Crisafulli of Crisafulli Estate Planning and Elder Law PC an estate planning probate and elder law firm serving clients throughout central New York. A former school teacher, Tim explains complex legal subjects in an easy-to-understand way. The commentary focuses on the central aspects of estate planning, such as Wills, trusts, asset protection, long-term care, and probate. And now here's Tim.
Tim Crisafulli:
It happens almost weekly at Crisafulli Estate Planning and Elder Law. The phone rings and the caller asks “How much for a simple Will?” After more than 15 years of experience, I've learned the real answer. A simple Will will cost you all of your assets, all of your dignity, and any chance for family harmony after you're gone. Okay, that may be an overreaction, but let's break that down. When people ask about a simple Will, they're generally referring to a document that leaves everything to a spouse, if married, and everything else equally to kids or perhaps other beneficiaries. Granted, there are situations in which that type of plan is a perfect fit. And so that's what the client should choose as long as it is an informed choice. That said, it is important to notice what a simple Will does not do. It does not protect assets while someone is still living. So if that person needs a nursing home or get sued, there may not even be anything left to pass through the Will. A simple Will does not appoint someone to make health care decisions for you if ever you cannot speak for yourself. A simple Will does not appoint someone as power of attorney to handle financial transactions if ever you cannot. This means that medical decisions and your financial decisions, while still living, could ultimately be made by a court. Leaving all assets outright to a surviving spouse may sound sweet at first blush. Indeed, many attorneys who practice in estate planning and elder law refer to this as a sweetheart Will. However, if that surviving spouse needs long-term care, then all assets could be lost. If that surviving spouse remarries all assets could wind up with a new person to the detriment of the original couple's children. A simple Will that leaves assets outright to beneficiaries risks leaving large amounts of money directly to people who might not be able to handle it on their own. Whether that is due to being too young, due to being bad at handling money, or due to being in bad relationships. A simple Will that leaves assets directly in hand to a person with a disability, rather than in a supplemental needs trust, could cause that person to lose government benefits to which that person would otherwise be entitled. Again, I'm the first to admit that a simple Will really is a perfect fit for some people, but it's definitely worthwhile to at least learn more about whether a more sophisticated plan may be a better option.