What WILL you give your Valentine?

Last week, we talked about your Valentine’s plans.  I suggested taking care of those you love is a good plan this month – and not only with a box of chocolates or a greeting card.  One way to take care of those you love is to review your estate plans.  If you don’t have a will, learn the Montana laws of intestate succession.  If you do have a will, review and update it this month.  In either case, one of the truly important aspects to understand is that contractual arrangements take priority over wills. 

When people die, their property gets transferred to those still living.  There are three methods by which this happens:  contractual arrangements, written wills or Montana intestate succession laws.  Contractual arrangements take priority over wills.  Marsha Goetting, MSU ExtensionFamily Financial Specialist tells of a time she was teaching an estate planning class.  A rancher came up to her following the class to discuss his situation.  His first wife had passed away and he had remarried.  He and his grown son were running the ranch.  It was his son’s livelihood (not to mention way of life).  In his will, he designated that the ranch would go to his son.  However, all the land was titled in joint tenancy with of survivorship with his second wife.  Guess what?  If he had died, the second wife would have gotten the ranch because of the joint tenancy contract.  Not the son who’d been working on it for 20 years.

 

Contractual arrangements you may want to review this month include life insurance and annuity policies; retirement accounts; employee benefit plans; revocable and irrevocable trusts; payable on death (POD) designations on checking/savings accounts, certificates of deposit, savings bonds; and transfer on death (TOD) designations for stocks, bonds and mutual fund accounts.  Make sure that your intentions for how, and to whom, you want to leave money and property match with how you have your accounts and property titled.  How your will is written will be secondary to these contractual arrangements.

If you have minor children (under age 18) who are named as beneficiaries, Montana law has special provisions for how assets can pass to them.  A conservator will need to be appointed to manage money or property until the minor reaches the age of majority.  A trust could be established with provisions, or assets could be transferred to a custodial account with an appointed custodian to manage the assets, until the child reaches age 21 or older.  You can read about more details and circumstances in the MontGuide, Designating Beneficiaries through Contractual Arrangements. 

As you review your situation, you may develop some questions.  Fortunately, Goetting will be in Teton County on March 9 sharing her expertise with a class on estate and financial planning, Think You Know Who Receives Your Property When you Pass Away?  Think again... The class will be held at the Stage Stop Inn from 6:30-8:30 p.m.  To register for the free class, contact the MSU Extension Office in Teton County.  As well, Goetting will be available to teach a few other classes or hold individual consultations (no legal advice given). Goetting is skilled in many areas of financial and estate planning.  Instead of my deciding what to have her teach, I’d like to hear from you.  Let us know this week if you have topics that are of interest. 

For Valentine’s, in addition to the cards and chocolate, set aside some time to take care of those you love by reviewing your contracts, your will, or Montana laws to make sure your intentions are in order – and, mark your calendars for March 9 for the estate planning class.  Also, since it is Valentine’s Day, think about writing a love letter to leave with you your will, funeral file or estate plans.  It would be nice for your beneficiaries to not only to have your assets, but a reminder of your undying affection for them.