Did Prince Die Without A Will?
I was browsing through my Twitter feed the other day and came across a tweet from one of my favorite follows, @taxgirl, that was instant click bait. @taxgirl, better known as Kelly Phillips Erb, provides a unique take on the world of tax and how it relates to pop culture. Here is the link to her article, Sister Says Prince Died Without A Will: What It Means And Why You Shouldn’t Let It Happen To You . It would be shocking to think that someone with so much worth would not have a plan in place to pass that worth on.
This article brings up some great points that Dave Biskup touched on in our December 2015 newsletter. Now, we don’t all have the assets that Prince had, but it is important to have a direction for what assets that we do have. Just this week we have been notified that two of our clients have passed away. Death is a subject, especially for me, that is very hard to think about or talk about it. The mindset is to block out any thoughts of death that may circulate in our heads while lying in bed at night. However, death is inevitable. Not having a will is almost a selfish act when you think about it. The time, money and stress it could cause your loved ones is simply not worth not having a plan in place. A couple hundred dollars can save your loved ones from having to deal with any repercussions.
…when a person dies without a will, things become more complicated. Since there’s no named executor, the Register of Wills or probate court will appoint a person to serve as administrator (more or less an executor with a different title). The court doesn’t just pull a name out of a hat: in most states, if an executor isn’t named, any person of interest – including creditors – can apply to serve as administrator. Yes, that means that, in theory, your credit card company or your mortgage broker could end up administering your estate.
Save your loved ones the time and stress involved by having a plan in place.
Our goal at Hammernik & Associates is to provide you with more than just a filled out tax return. We want to make sure that you are set up in the best financial situation in the present and in the future.
We have outlined a “Love Letter To My Family” which outlines steps to make sure everything is properly taken care of with your estate.
As always, if you have any questions regarding this topic, feel free to contact our office!
Until next time,
Nicholas Hammernik, EA