Does a Life Estate Deed Eliminate the Need for a Will?
Full Question:
Answer:
A life state deed may eliminate the need to dispose of the property in a will, but it is still recommended to have a will because a will covers more than inheritances. It also appoints an executor who is the person responsible the affairs of the deceased, such as paying the debts of the deceased, as well as distributing assets. A residuary clause in a will may specify how unnamed assets are distributed, such as property acquired after a deed is granted. Without a will, a deceased's property will be distributed according the state intestacy statute, which vary by state, or may escheat (be forfeited to) the state. This may take longer and cost more than if there is a will, and can also mean that your possessions and belongings may not be distributed as you would have wished. Your estate might wind up being administered by a total stranger appointed by the court.
Other advantages of making a will, among others, include:
-It is only through making a will that you can choose individuals you trust to act as your own personal representatives, who will take charge of your estate, wind it up and distribute it according to your wishes.
-With a will, you may make arrangements for the guardianship of any dependent children and so ensure that they are cared for as you would have wished.
-Many people also use their will to give specific instructions for their burial, cremation, or possibly for the donation of organs for medical research.
-A will also can avoid tax consequences that may result in its absence. A properly prepared will can greatly reduce estate tax liability.
-A will can save your family from the burdens of intestate distribution procedures and avoid family disputes.