A couple in their 50s with no children and $2 million in individual retirement accounts and 401(k)s, along with three properties and no debt, is questioning whether they need a will.
The couple owns a primary residence, a vacation home and their mother's home in another state.
Experts say the answer is yes. Without a will, state intestacy laws would determine how assets are distributed, potentially creating complications and delays. A will allows the couple to specify their wishes, designate an executor to manage their estate and potentially minimize taxes through strategic planning.
Retirement accounts like IRAs and 401(k)s pass directly to named beneficiaries regardless of a will, but a comprehensive estate plan ensures all assets are addressed. The couple should also consider other documents, including a living trust, power of attorney and healthcare directive, according to estate planning professionals.
Given the complexity of owning property in multiple states and the size of their estate, consulting with an estate planning attorney is advisable.
