A client came to us this week to do some estate planning. Their financial situation was not complex so they thought all they needed was a will-based plan. In our discussions with her, we learned that she had no children of her own, but she was one of 10 children herself! Some of her siblings had already died, leaving their own children. One or two of those had special needs. They were scattered all over the country as well.
What difference does this make, you might ask?
I am glad you asked that! It makes a big difference it turns out. It won’t affect the client because she will be dead but it will affect her Executor and her chosen beneficiaries.
The courts here in Alabama have certain rules and procedures they follow. When a Will is admitted to probate, ALL next-of-kin must receive official Notice of the case before it can be opened. The lawyer assisting with the probate must send out notices by Process-Server and receive back evidence that they were served before the probate case can be opened. Imagine having to serve nine siblings or their surviving children and grandchildren! Just getting good addresses on them all will be a tall order. Paying to have each one served will cost a fortune and if you can’t get them all served, which is likely, a hearing will need to be scheduled.
Also, if any next-of-kin suffers from a special need or has a lack of capacity (dementia for example), the Court will require a Guardian ad-Litem be appointed to represent their interests in the matter. This takes time and costs a lot of money. Even if the person with the special need isn’t getting a dime under the Will, the court will still appoint the Guardian ad-Litem.
Having a trust-based plan avoids all of these delays and expenses! While the trust might not be needed for asset management, it provides substantial cost and time savings to your Executor and the people who will inherit what you leave behind. When you consider your own estate plan, discuss these family details with your attorney because it isn’t just about the size or complexity of your estate. It also involves whether or not you want to impose undue hardship on your loved ones.
Give us a call to talk about this. Always happy to help and our consultations are free of charge.
William G. Nolan
The Alabama Elder Care Law Firm LLC
205/390-0101