Writing a good will — it's all relative

No one wants to acknowledge their own mortality, especially in writing.  This is probably why avoiding doing so is the favored estate plan for many Americans. It has been estimated that 70 percent of all adults — many of whom are parents of minor children — do not have wills. Even among the affluent a dread of estate planning had 37 percent going without according to a 2004 survey conducted for PNC Financial Services Group.

Dying without a will (or intestate) leaves the division and distribution of one’s assets up to the state. “Basically, if you don’t write a will, the state will write one for you,” explains Thomas J. Dwyer, a Chicago attorney. “However, the way the state does it probably wouldn’t be how most of us would like it done,” he says. 

Although each state has slightly different laws for doing this, they tend to favor distribution to biological children and current spouses.  In their absence, parents and siblings typically figure into the plan. Given the right circumstances, the state may even declare itself the rightful heir.

Legally unrecognized relationships, like those between life companions, roommates or those co-habiting could leave a surviving "roomie" literally and figuratively locked out and having to prove ownership of personal belongings depending on whose name was on a deed or lease. 

For those leaving behind underage children, the state decides who will be given guardianship irrespective of known preferences or promises. Any financial assets held on the children’s behalf will be subject to annual audits, fees and quite promptly and fully distributed directly to those children upon reaching the age of majority — 18 years old in most states.

Blended families can face an assortment of unintended consequences, with some or all assets passing to first-marriage children and bypassing second spouses and stepchildren altogether. In some cases, family heirlooms may be put up for sale with family members having to buy them back from the state.

Letting the state decide may save the decedent a few hours of thinking through their exit plan, but it can be exceedingly costly and aggravating to those left behind. Ultimately leaving a will is a much better legacy than dying without one.

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