The ‘I Love You’ Will: Be careful, it could lead to a broken heart!
An ‘I love you will’ is a phrase used in estate planning to describe a Will where each spouse gives their assets to each other upon death, and then to their children.
A shortsighted affair –
- It is simple and straightforward to set up
- You can appoint a Guardian for Minor Children
- You can make it clear to the court what your intentions are
The potential for heartbreak –
- The Will still has to go through Probate and a Judge is ultimately responsible for deciding how assets get distributed
- There is no language dealing with what happens to your assets if you are incapacitated but not deceased
- No estate tax savings
- No protections for disabled children or beneficiaries
- No protections for spendthrift children or those who suffer from substance abuse
- The Will becomes public record
Ensuring long-lasting love with a Revocable Living Trust
- Deals with assets outside of Probate and can provide a flexible way for distributing assets
- Provides asset protection and planning for beneficiaries
- Better suited to deal with blended families and/or second marriages
- Pets can be included in a revocable living trust
Sure, an “I love you Will” is simple and straightforward. But the aftermath and unintended heartbreak may not be.