I've embarrassed to say that I've never had a will. With that said, we've decided that it's time and will probably schedule something with a lawyer in the next couple of weeks. We don't have any kids. We do have a 4 year old niece that we'd like to leave 90% of our assets to but we want to make sure that her mother doesn't see a cent. How would you structure something like this? Give her a certain amount at different stages of her life? I know that I didn't have a clue about money at 18 or 25 and would have just blown the money.
Will question
- Thread starter dmclone
- Start date
Your attorney should be able to give you some ideas on how to set up the will and maybe a trust would be needed as well. Good luck!
These are the questions you need to ask the lawyer.
Trusts can be expensive so make sure you understand the fee structure.
There are also things you can do now to start moving some of the money.
529 plan for college, Roth IRA, etc.
Trusts can be expensive so make sure you understand the fee structure.
There are also things you can do now to start moving some of the money.
529 plan for college, Roth IRA, etc.
I would think some sort of trust that she can't touch until she's at least 18 or 21 or even 65. It's your will so I would imagine you can set any age limit you want.
The only question I would have is if it is in a trust how the taxes are paid on any interest, dividends etc.
With the continually changes in tax laws it can be difficult. My Dad's will was set up to be split into two separate trusts. Strictly for tax purposes. By the time he passed away the lawyer said that wasn't needed as the laws had changed so much since he had drawn it up.
The only question I would have is if it is in a trust how the taxes are paid on any interest, dividends etc.
With the continually changes in tax laws it can be difficult. My Dad's will was set up to be split into two separate trusts. Strictly for tax purposes. By the time he passed away the lawyer said that wasn't needed as the laws had changed so much since he had drawn it up.
As someone who works in estate planning and probate, I see all kinds of issues when people do this. A Will is only a small portion of someone's estate plan. It needs to work in conjunction with beneficiary and other payable on death designations. There are also many state-specific nuances such as taxes, Title 19, etc.
Sometimes a generic Legalzoom Will suffices. But I've never understood not paying a little more for the peace of mind knowing you've received good advice regarding the distribution of your life's work.
Hate to be a Debbie Downer but if somebody has money coming at a later date and they want to get it sooner all they have to do is use JG Wentworth or a similar company. I'd not waste a lot of sleep and effort trying to devise a scheme to make sure it is used wisely.
We couldn't afford anything beyond that at the time. My point is its better than nothing and at least a foothold until you can get a more comprehensive plan or some money saved up.
Though now reminds me that being in our mid-thirties with some money saved up, should probably talk to the wife about getting an actual will drafted up ha!
Just an FYI and not sure if you and the niece are in Iowa but Iowa does have an Inheritence Tax that affects non-lineal decendent heirs. Depending on how much the asset value is it can be a good amount of tax. A couple years ago I did one of these tax returns for a lady who inherited approx. $1.5 million of farm land from her uncles and her tax bill wasn't pretty.
There are a couple things you could do to avoid this though. In fact my client above was in the process for one of these things when the uncle died.
On a side note, you could gift her money why you are still alive. My wife's parents are doing that with us and her brother because they'd rather get to see us use it while they are still alive.
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We're in our 40's and she's 4. Not sure I want to be gifting anything at this point . Just want something in place in case my wife and I both die at the same time.
Exactly. It’s probably complicated by the fact you don’t want the mother to have the money.
I understand that, but it is something to think about once she is older. For example, when it's time for her to go to college you could pay for it (directly to the school), or if she was ready to buy a house you could contribute to that purchase. It's a long ways off but there are many ways you could help her out before you actually pass.
I paid for one of those online will companies a few years ago and was very disappointed in what I got from them, essentially a Word doc that I copy and pasted my name into a bunch of times.
I'm going to go talk to a real professional sometime soon. It was one of my financial goals in 2017 . . .
I'm going to go talk to a real professional sometime soon. It was one of my financial goals in 2017 . . .
Do you want her to get the money when she is 18? Just set up someone you trust to execute it when she is 18
C'mon - EVERYTHING he needs is on these forums! Fire, sexual innuendo, name-calling - everything you'd expect when a family comes together to collect their inheritance.
Since it is a pretty inexpensive group benefit to offer, a lot of employers offer ARAG as an employee benefit. It is like Legalzoom only it services employers that want to offer employees another employee benefit. https://www.araglegal.com/
i know my employer offers it as no additional cost to me. This is how I drafted my families Will and medical POA. As an aside (and not that it matters since you do this all online) , ARAG's office in is downtown Des Moines across from the downtown YMCA.
i know my employer offers it as no additional cost to me. This is how I drafted my families Will and medical POA. As an aside (and not that it matters since you do this all online) , ARAG's office in is downtown Des Moines across from the downtown YMCA.