Posted: 7/20/2017 8:17:47 PM EDT
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My wife and I have been very negligent and haven't set up a will yet. Here's a couple of facts:
* Good amount of assets * 20 year old son, halfway through college * 17 year old daughter (turns 18 in October), going to college next year. At first I thought it would be a simple will - split everything between them 50-50. I mean, that's what we ultimately want, but then I started thinking about complications: 1) My daughter isn't 18 (yet). How will this complicate the will? 2) My son is very intelligent and I would normally consider making him the executor, but is this too much of a responsibility for a 20 year old college kid? 3) If so, then should I find someone else to be the executor until he's older? 4) Is it a good idea to just say "Here, split everything 50-50", or would it be wiser to dole out the money via a trust over time or until they reach age 25 (or something like that). I just want to get an idea for what an attorney will ask me when I make an appointment and what other things I haven't considered yet. Thanks... |
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Not an attorney here but I set up a trust several years ago for my wife and I. Think carefully about when you would want to beneficiaries to receive the proceeds from the trust? 25? 30?
You know their maturity level -- I would be careful giving too many $$ to quickly to someone who just lost their parents. Only you can make the decision but personally I wouldn't put my son into the position of being executor. Too many things can happen and it might alienate him form his only remaining family member. Think through the power of attorney questions as well. |
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I would bring these questions up with your estate planning attorney. It's not difficult to set up a trust that would disburse money when certain events happened, e.g. graduating college, reaching age 25 or 30, diagnosis of a catastrophic health problem, etc. if you prefer not to just hand a wad of cash to a young adult child.
If your daughter were 7 not 17 then selecting a guardian for her would be important. At her current age she would likely turn 18 before the court could act anyway even if both you and your wife passed away today. |
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If you have significant assets, you need to talk to an attorney about all of this. Its cheap insurance and you will have peace of mind and only have to do it once if your attorney is experienced and drafts it properly.
Being an executor and dealing with probate court is a royal pain in the ass- no matter what the age of the person is. A good will should eliminate many of the issues, but its still a pain. My father made me executor with everything going to mom. I was well versed with the courts and it was before I went to law school. My dad was all about saving a buck and I figured I could honor is last wishes and save a buck. I got 80% done on my own and mom decided she did not want the house in her name and to just give it to us three kids now with her having rights to live there until death. Off to the lawyer I went- who was impressed I had did what I did thus far. They did a few docs and closed out the probate for $800 for me. Told me my dads will was so well written they could have done everything for $2K total, probate fees included (~$600). I am six hours away and all things considered, I would have saved my time and money by letting a professional do it from start to finish. You could set-up a trust now to cover those fees and have the same firm or another be the executor. |
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Quoted:
It's easy to miss little things which make a big difference. My parents wills were notarized, we thought that made them valid but not so. Florida requires two signatures, so having only a notary meant nothing. |
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I can't speak to Texas law so take this as general, not legal, advice.
If you plan on leaving money to a minor, you probably have to leave it to a trust with the minor as a beneficiary, otherwise a court would have to appoint a guardian ad litem. Even if your child is over 18 it might be wise to still leave them the money through the trust. That way the money won't get spent too fast and if Texas law allows, you can make it a spendthrift trust, which protects the assets in case the kids get into money related trouble as creditors can't get at the assets that way. I'd suggest talking to a local competent lawyer. |