Lessons from 2020: Prepare for the Unexpected Today

This guest post is from Regent Law 3L Katrina Summer, a fall 2020 Wills, Trusts & Estates student:

To say that 2020 has been a difficult year is a significant understatement. So many people have lost their lives. Aside from notable television and movie personalities like Chadwick Boseman, Sean Connery, and Alex Trebek who died of natural causes, hundreds of thousands of people have lost their lives due to Covid-19. One year ago, the world was only just beginning to learn about the novel coronavirus. Undoubtedly, those who perished could not have anticipated a worldwide pandemic or have known that the virus would be fatal to them while it posed a minimal threat to others. As a student, currently studying estate planning, I wonder how many of those who lost their lives may have died before having the opportunity to prepare an estate plan so that their assets could be passed to their loved ones according to their wishes.

When a person dies intestate, without a will or a will substitute, state law dictates the disposition of her assets. This is not a desirable outcome and it can be avoided. Even without a will, a variety of will substitutes can be used to transfer assets after death. For example, devices like life insurance policies and pay-on-death accounts allow a person to designate a beneficiary who will receive an automatic transfer upon the policy or account holder’s death. A person can also establish a trust for the support of her loved ones. These devices pass without probate, the lengthy, legal process involved in proving the validity of a will and administering an estate.

Despite the probate process, a will is a very useful tool because a person may have assets not accounted for by will substitutes. For example, a will can be used for something as important as identifying a preferred guardian to care for a person’s minor children in the event of death. Also, a will can account for future assets. A person may not own a car or a home today, but someday he may. A will can specify who is to receive a person’s entire estate, whatever it may be, at the time of his death.

It does not take a pandemic to raise the unfortunate reality of unanticipated death. Truly, the unexpected can happen at any time. It is advisable to see an attorney to develop an estate plan. Ensure that your wishes are known and that you control the disposition of your assets, for the best interests of your family.