There is no law that says you have to make a will or other estate plans, but there are laws that dictate what happens to your assets if you don’t. Each state has laws that dictates what will happen to its resident’s property if they fail to take advantage of their right – and responsibility, to make their own arrangements. The following is a simplified example of the distribution of your assets without a will:

The state makes the assumption regarding who you would like to receive your property. While formulas vary between states, it is generally split among surviving relatives. Friends and charitable interests are never included in the state’s formula. Since the state cannot know your wishes concerning your survivors, each will receive a share of your assets based on how closely they are related to you. No judgements are made to adjust the amounts to fit differing needs. If you have no close relatives, the state may give your property to distant relatives you may have never known, or, if there is considered to be no known surviving heir or relatives, your assets could actually become the property of the state.

It is an often mistake to think that you will save money by not having a will, trust or other arrangement in place. In fact, it is often more costly to rely on the plans of the state. Since the state may not be able to determine who your heirs might be, much time and expense may be required to satisfy this process. The result could be much less of a residual of your assets to your surviving relatives, and any time delay of the transfer of your assets made by the state could impact your loved ones, especially at a time when they may need the property you had intended to leave them most.

Through the state-made will process, everything may be put on hold while attempts are made to find heirs, post bonds, and prepare accountings - a process that could take six months – or much longer.

When children become a factor in the distribution of your assets, the state will consider who will care for the children, and who will manage the funds they inherit. In this case, a close relative will usually be chosen by a court to act as guardian - someone who may not exactly be the person you had in mind. A person, or institution, will also be appointed to manage the assets the children will receive from your estate, as determined by the state. When the children reach “legal age” – which may be as young as eighteen (18), they will receive all of their inheritance – to use as they wish.

Fortunately there is an alternative to a state-made will, which simply requires you to take the time to establish your own plan. Through a valid will, trust or other arrangement – such as predetermining the beneficiary of your life insurance or retirement plan, or, establishing joint ownership of your assets, you decide who will receive your property. Through this simple measure, steps can also be taken to expedite the distribution of your assets - which can be unequally allocated to your relatives, and, designation can also be directed to friends and charitable organizations. When it comes to children, you can designate through a pre-established plan, who you wish to take care of any minor children you may have, and include provisions for the management of the property left to them.

Gift and estate taxes may not be a primary concern to you, however, in some cases the failure to adequately plan can result in unnecessarily large portions of your assets being used to pay taxes.  A carefully drafted will or living trust can be valuable to you in planning for taxes that may be due. Your personal advisor can assist you in determining what your taxes might be and help you plan accordingly. As part of your estate plan, you may consider charitable gifts - not only for philanthropic purposes, but as a vehicle through which your estate may be considerably protected against taxes. Charitable gifts can be set as a certain amount, or simply whatever is left over after your loved ones have been adequately provided for. If you wish to include a charitable gift in your estate plans, be sure to use the correct legal name of your intended beneficiary. For the purpose of the Florida Trail Association, your estate plan should read:

So where do you start? The hardest part is committing yourself to sit down and develop your plan. Begin by making a list of persons in your life, property you own, the plans you would like to see implemented, and the advisors who you trust to help you put your plan together. After considering your plan, contact your personal legal advisor to have your will and any other of your estate plans put into proper legal form. Do-it-yourself wills may not be valid, so take care if you should decide to use them. If you do not know of an attorney, ask your friends or relatives for a recommendation, or call your local bar association office. Attorney fees are usually reasonable, and in the end can result in considerable savings of the value of your estate as it passes to your designated beneficiaries.

Estate planning can be a rewarding experience and will provide you tremendous flexibility in developing your will. It can also maintain your estate’s considerable value and pass effortlessly to those whom you wish to benefit.

If you would like more information regarding how to develop your estate plan, including the different options that may be of the most benefit to you, or how to include the Florida Trail Association, Inc. in the charitable portion of your estate plan, please give us a call at 352.378.8823. We would be honored to have the opportunity to assist you.

Dennis Miranda
Executive Director
Florida Trail Association, Inc.
5415 SW 13th Street
Gainesville, Florida 32608
1-877-HIKE-FLA
dmiranda@floridatrail.org