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Occasionally, I’ll have someone admit grudgingly that it makes sense to draft a will, but then they perform a near 180 by saying “I’ll just buy a will kit from Grand & Toy.” Or worse, “I’ll just write one up myself and leave it in the jewelry box.”

Look, if you’re going to do this, do it properly. Drawing up a will by your own hand (“Holographic Will”), can cost you even more than if you had done nothing at all. Not only are you leaving open the possibility that your instructions won’t be interpreted correctly (e.g., defining exactly what your assets are, how they will be valued, how they will be divided, etc.), but you’re also running the risk that your will won’t comply with the province’s statutory requirements.

Now you’ve complicated matters and your family is spending more money for lawyers to properly analyze and come to an agreement as to how the estate should be managed. Worse, the will might be thrown out altogether, causing wasted time and putting the whole process back at square zero (i.e., not having a will at all). If you’re reading this as you get ready to open up the will kit you bought at an office supply store, take the following steps:

1. Put the box back in the plastic bag along with your receipt.
2. Go back to the store and return it.
3. Use the refunded money toward paying someone to do the job properly.

Also, don’t assume that the will you made out before you were married or re-married will automatically include your current spouse. The first priority (well, perhaps second priority) after the ceremony is over should be getting an up-to-date will.

Many Blessings,

Andray Domise
Independent Financial Advisor
Change your life one dollar at a time, with REAL help for building wealth and reducing debt:
http://www.andraydomise.com

Estate Planning FAQ:

Question: What are the best estate planning tools for a newly married couple?

Answer: The best thing you can do is to write your wills and name a health care proxy – the health care proxy is the person who will make medical decisions if you can’t. Once you get married, usually this is the spouse but if your family disagrees with the spouse, then there could be disastrous consequences (e.g. the Terri Shiavo case). Also, make sure to update your payroll info with new marital status and make sure to update the beneficiary designations on pensions, life insurance, etc.

Question: Estate Planning: Now that home prices are often lower than the outstanding liablility, how do you pass on to your spouse?
Do they have a choice not to accept home because more is owed on it than the value of home. Is there a certain clause to include in a will or living trust?

Answer: Buy a life insurance policy that tracks the outstanding balance on the loan. The premiums are very reasonable. If you die the debt is repaid.

Question: Estate planning – what legal document can be used?
Person#1 would like to give legal guarantee to Person#2 that specified property will be left to Person#2 after death of Person#1. What legal document can be used for that purpose?

Answer: An irrevocable trust.

Question: What forms are needed for estate planning for a us citizen abroad?
My father has land in asia under his name and recently passed away. In order to transfer ownership to my mother, does anyone know what forms I would need to do this? Other than bringing proof that he is my father, land deed and new person’s ID.

Answer: Of course you’ll need the proof, any relevant paperwork, an ID might help but a passport would be better. If you or your mother happen to have citizenship in that country that would probably secure your right to the property. The countries in Asia have very different laws. You need to find out about your specific country. Talk to a lawyer in that country.

Question: What does an estate planning attorney do?

Answer: They generally set up legal arrangements for someone so that when they die, their asset will avoid having to go through probate court and will avoid having to pay estate taxes. They also set up arrangements related to paying for long term care (nursing home, etc.). They do a lot but all of it has to do with preparation for growing old and dying.

Question: Estate Planning: What happens to a property loan in the event one spouse passes before another?
Living trust established, in process of being funded with title being transferred to trust. What happens when there is not sufficient life insurance to cover existing liability on home?

Answer: The remainder of the loan would still be due at the existing payment rate unless other arrangements are made with the lender (or refi with another lender). Note that paying down part of principal does not typically allow you to skip payments or make the payments smaller (unless interest only or flexible payments), it just ends the loan sooner (less payments until fully paid off), and results in less total interest paid over the life of the loan.

Question: How do I tell my sister in law that my Mom’s estate planning is none of her business?
The sister in law is concerned about assets going into probate after my Mom dies. She assumes my Mom is doing nothing. I think there are other concerns that she is not telling me. I understand her concern, but feel this is an issue between me, my siblings and my Mom. I don’t know for sure what my Mom is planning, but from some things that she has said, I think she is doing something. At this point I am not pressing the issue and I am giving my Mom the chance to make the first move. If she doesn’t, I or one of my siblings will bring it up when we feel the time is right. It is not my business to tell someone else my Mom’s business.

Answer: Just talk to her reasonably. Tell her you understand her concern about probate and you feel the same way, but you feel you want your mom to decide on her own. Also let her know that if you don’t feel your mother is doing anything then you or one of your siblings will broach the subject with your mother. Let her know that you understand her concern, but that you and your siblings are aware of the situation and you will handle it.

Question: Estate Planning ? If I already have a will with all the other papers,such as Power of Attorney etc. and have all accounts w/POD or TOD to my children except for my house do I need to create a Revocable Trust or not? Couldn’t I just have a TOD on my house also to avoid Probate? Creating a Revocable Trust gets pretty pricey.

Answer: A simple, general answer is that avoiding probate would be nice for all of us but it may or may not be worth it. You might want to consider the cost of the probate process (this is capped in most states) v. the cost of writing a revocable trust and keeping it updated. Your situation might make a revocable trust advisable because of other concerns you have that a will may not cover – that’s another good reason to see a few attorneys to figure this out. The first attorney you talk with is not necessarily the right one for you.

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