Do you still need a will if you designate beneficiaries for all of your assets? (Guest Post by Blakely Moore)

Do you still need a will if you designate beneficiaries for all of your assets?

Sometimes people wonder if they still need a last will and testament if they have named beneficiaries on their assets. For example, perhaps you have named your spouse as the beneficiary of a retirement plan. Normally, if you have correctly named the beneficiary, the retirement plan will pass to your spouse after you die with or without a will. So why have the will at all?

The reality is that a will is such an important document that you should have one even if you have named a beneficiary for every asset you own. The will is much more than a list of people who will get your assets after you pass away. So, let’s take a look at why you need a will regardless of your beneficiary designations.

Dealing With Administration

One of the main purposes of a will is to set up how you want your estate to be administered. Who do you want to be your executor? Whoever the executor is will be in charge of your estate, kind of like a CEO is in charge of a corporation. Without a will to provide guidance, a court will be forced to pick someone without knowing who you would have chosen.

Another administrative issue is the payment of taxes and creditors. Which assets should be used to pay the creditors? What about tax liabilities? Should property be sold to pay the debts? All these questions are usually answered by a well-drafted will. Without the last will and testament, the executor will just have to follow the state guidelines and figure it out on their own. This can cause family conflict and confusion. But all this can be solved with a will.

Designating a Guardian for Minor Children

If you have minor children, who will take care of them if both parents die? This decision is made by a judge, who almost always wants to know who the parents would have chosen as the new guardian. After all, the parent deserves to have a voice! But without a will, you forfeit that voice.

A will allows you to designate who you wish to be the guardian of your children should they be orphaned. Without this, a judge will have no way of knowing what your wishes were. This makes a will an indispensable legal document for all parents of minor children. The will helps you take care of your children, even after you pass away.

Creating Backup Beneficiaries

What happens if the designated beneficiary passes away before you do? Making that determination is easy with a will. You would be surprised how often a person forgets to update beneficiary designations, resulting in large assets being given to an estate. And if there’s no will to guide that estate, you get no voice in what happens to that asset.

Bottom Line

Beneficiary designations are a fantastic tool, but they are not a substitute for a good will. A will is important part of any estate plan, and every person should have one. If you need a last will and testament, contact an attorney today.

Blakely Moore is an estate planning attorney in Gainesville, FL. He prepares wills, trusts, and other estate planning documents.