If you’re a member of the Silent Generation or a Baby Boomer, you might be sitting on a lot more wealth than previous generations. If you were born after 1964, you may therefore be one of the recipients of the Great Wealth Transfer that is predicted to take place in the coming years. It’s estimated that $84 trillion dollars will be inherited by younger family members or charities in the next few decades. The question then becomes, how orderly will that transfer of wealth be? In your own situation, even if your assets are more modest, have you prepared an estate plan- including a will- to ensure that your assets are transferred according to your wishes, without creating confusion or strife? If you’re expecting to inherit, will things go as planned, or will conflict erupt between you and other family members? For some basics on will preparation and estate planning strategies and documents, unlock your safe deposit box and click here and here. You can also purchase a recently published, easy-to-understand guidebook here.

Take the recent case of Aretha Franklin as a cautionary tale. Upon her death in 2018, her heirs found that she had never drawn up a formal will but rather left behind several handwritten notes with different decisions about how her assets should be distributed. While the laws of Michigan would have apportioned her estate equally among her four sons, her handwritten notes left different amounts to different sons, thereby creating chaos and pitting one sibling against another- and leading to an expensive court fight. A court decision finally determined (nearly 5 years after her death) which handwritten note was legally valid, but in the meantime the family was left with bitterness and extensive legal bills to sort things out, thereby diminishing the value of the estate and leaving behind lasting hostilities in the family. 

Chaos rather than clarity is a distinct possibility if a will is not prepared to deal with this transfer of assets. And a good percentage of us have not yet created a will. According to recent surveys, 34% of Americans say they currently have a last will and testament to deal with the transfer of their assets upon their death. And while many of us may have addressed certain aspects of our estate- for example, named a beneficiary for our retirement account so that the money will directly transfer to our heir without the need for a will- a will is still critical, even if your wealth or asset base is modest. You likely have a car, possessions that you wish to pass on, perhaps a home, and savings- all of these need to be assigned to an heir through a will, or the state will do that for you in a manner that may not align with your wishes. State law governs the distribution of assets when someone dies without a will, and as many have discovered, “The default (state) rules are out of touch with today’s family structures. Don’t assume what you think will happen when you die without a will or trust is what actually will happen.”

While it’s true that no state requires you to have a fancy, lawyer-prepared document in order for it to be valid, that is the path toward the best chance of ensuring your will is properly prepared and legally binding.  You can start the process with some online tools to help you think through your issues and organize your ideas. There is a website called FreeWill that helps you develop a personal will for yourself at no charge, along with recommendations for charitable contributions that may appeal to you. It also can connect you with an attorney to ensure your legal concerns are addressed and provides tools for other documents, including advance care directives, trusts, and other estate considerations. And once you have created that will, avoid storing it in the couch cushions (where Aretha’s handwritten notes were found) and instead, store it in a safe, secure, but accessible place, such as a locked box in your home and/or with the attorney who helped you prepare it. The key is to make sure the person appointed executor of the will knows how to access it upon your death (leave a “letter of instruction” for that person). So, even if it’s hard for you, prepare a will, as it will be that much harder for your loved ones if, instead of a will, they are left with confusion and court appearances upon your death.