At the Foundation, I have the opportunity to assist many individuals who serve in denominational ministry, as well as Arkansas Baptists who desire to leave a charitable gift to ministry through their estate plans. Often, when discussing their planning goals, individuals tell me that they simply want a Last Will and Testament (“Will”) to ensure their assets are distributed according to their wishes.
I believe having a Will is very important because it can address several key matters, including:
- Naming the person you want to oversee the administration of your estate and carry out your wishes;
- Specifying who will receive your assets and when and how those assets will be distributed; and
- Nominating a guardian for any minor children.
This list is not exhaustive, but these are examples of matters every person should thoughtfully consider and legally formalize. When it comes to distributing a lifetime of accumulated assets, it is important to have a plan that clearly communicates your intentions.
What Wills lack
What many people do not realize, however, is that a Will does not avoid probate. Probate is the court-supervised process for transferring assets after death, and it is often required for assets that are owned solely in an individual’s name at the time of death. Many people assume probate is only necessary when family members disagree or when an estate becomes contentious. While disputes can certainly lead to probate proceedings, even a well-drafted Will generally must be submitted to the probate court in order to transfer certain assets.
In other words, a Will is good because it provides instructions to your executor and the court regarding your wishes. It is certainly better than having no plan at all and leaving the distribution of your assets to Arkansas law. However, a Will by itself is often not great because it may require your loved ones to navigate the probate process and incur the time and expense associated with administering an estate. In many cases, this process may include hiring legal counsel and waiting months before assets can be distributed.
Reducing burdens
A comprehensive estate plan can often reduce or avoid many of these burdens. Depending on your circumstances, tools such as revocable living trusts, beneficiary designations, transfer-on-death arrangements, and other planning strategies may allow assets to pass more efficiently to your intended beneficiaries.
Regardless of the size of your estate, having a well-designed estate plan can help simplify matters for your loved ones and ensure your assets are distributed according to your wishes. In my view, estate planning is both a wise investment and an important act of stewardship.
EDITOR’S NOTE — This story was written by Dillon McClain and originally published by Arkansas Baptist News.
