Ask the Expert: Does a married couple need a will?
My husband and I made out wills 30 years ago. I want to update them. He thinks that not only is it not necessary to update our existing wills, but that in our case wills are not necessary.
We have two adult children and our intentions are that they split everything 50/50. Our bank accounts that aren't joint are in trust for each other. We're the primary beneficiaries on each other's annuities and the kids are contingent beneficiaries. Our home is in my husband's name only. What would happen if we had no wills?
If you survive your husband, your kids might inherit half the value of your house. I’ll explain why in a moment.
Your 30-year-old wills don't take into account your children's adult needs and relationships. And they were written to comply with outdated tax laws, so their language might have unintended consequences. You should update them.
True, assets that are jointly owned with right of survivorship go directly to the surviving owner. And assets with named beneficiaries go to the beneficiaries. But when you have no will, assets that are neither jointly owned nor designated for beneficiaries — like your house — are distributed according to state law.
That law says a surviving spouse gets the first $50,000 of a decedent's estate, plus half the balance. The other half is divided among his children. So if your husband dies without a will and you sell the house as a widow, your kids might be entitled to half the proceeds.
Even people who own everything jointly need simple wills to leave possessions like cars, jewelry and personal belongings. (Some of the fiercest family battles are fought over objects of purely sentimental value.)
The bottom line
Your wills should reflect current tax laws and your heirs’ current circumstances.
