[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]Look, we get it. A will is not something the average person considers until a situation arises where they might need one. In fact, some of the most common misconceptions we hear from our prospective clients is that if you are young, healthy, or have not accumulated significant wealth there is no point in investing in a will. However, you might be surprised to hear that, regardless of your net worth, if you have minor children or own any property, a will is an important document to have. The reality is that the future is uncertain, especially in the midst of a global pandemic, which is why you should consider these 5 pros of having a Last Will and Testament.
1. Avoiding Intestacy
It may seem obvious, but one of the biggest advantages of having a Last Will and Testament is avoiding Georgia’s intestacy statutes. When a loved one dies without a will, they have NO say in how his or her property will be disposed. This means that, depending on what your family tree looks like, property can transfer to distant relatives to which the decedent (or deceased person) had no relationship, property can transfer to a minor child or multiple minor children, or property can transfer to someone you otherwise do not want to have your property. If you are interested in learning more about Georgia’s intestacy statute and how it can be problematic to your estate, check out our article on Intestacy and Why Your Estate Should Avoid It.
2. No Posting a Bond
When a loved one dies without a will, Georgia law mandates that the administrator, or the personal representative handling the estate’s affairs, post a bond for whatever the property in the estate is worth unless all heirs consent to a waiver of bond. Similar to how a bond you would post to get out of jail is used as a deterrent to ensure your appearance in court, an estate bond is used as a deterrent to ensure that the administrator does not mishandle estate property. The problem with estate bonds is you cannot get one at the bondsman with an office next to the jail. Estate bonds come from insurance companies who charge premiums based upon the estate’s value. Thus, the more valuable an estate, the more expensive the bond will be. Further, estate administration takes a minimum of 6-9 months, but oftentimes much longer. Most insurance companies will require you to renew your premium every year, which obviously can become quite costly when dealing with larger, more complex estates.
3. Relief from Inventory/Annual Returns
Similar to the bond requirement, Georgia law mandates that administrators of intestate estates (estates without a will) file an inventory and annual returns with the Court unless all heirs consent to a waiver of this requirement. An inventory and subsequent returns are basically a full accounting of what is in the estate, what comes in, and what goes out every year. This requirement might seem like no big deal, but it can become burdensome when you have to track down every bank transaction and provide all of the accounting statements. Further, if you forget to file an accounting, the court can sanction you and have you removed as the administrator/personal representative. With all of the responsibilities piled onto a personal representative, why add one more that could be avoided through careful estate planning?
4. Freedom of Disposition
Did you know that the United States is one of the ONLY countries in the world that allows its residents to dispose of their property however they wish? In most other countries, property is disposed of to your next of kin no ifs, ands, or buts about it. Here in Georgia, though, disinheritance is commonplace and an important right. When you don’t have a Last Will and Testament, your property will pass to your next of kin by default. Don’t let the state dictate how you gift your property upon your passing.
5. Granting Powers Pursuant to OCGA § 53-12-261
Lastly, and one of the most important reasons to have a will is so you can direct your Executor (the personal representative of your estate when you have a will) to have the power to buy, transfer, sell, or encumber estate property. When you die without a will, or you have a will that does not grant such powers, your personal representative must file a petition through the probate court to get permission anytime he or she needs to transfer, sell, buy, or encumber estate property. This can be unduly burdensome for the estate’s representative, especially in a contested probate matter, because the heirs and/or beneficiaries must be served notice and/or consent to every transaction. If heirs/beneficiaries don’t consent, your personal representative will be in and out of court hearings, which can drain estate assets.
A will does not need to be a complicated or intimidating document. If you are interested in having your Last Will and Testament prepared, or having a will you’ve already had prepared reviewed and updated, call our office at 770-461-2025 for a free consultation. The experienced estate planning attorneys at Brown, Barbour, & Thrailkill, P.C. are ready to assist you.[/vc_column_text][/vc_column][/vc_row]