How To Leave Something For Your Heirs
If you read about different famous people throughout history, you will often read that these people died as "penniless paupers," or that they died "not owning anyone anything." If you would rather be part of the latter group, and you want to leave something for your adult children, here is how you can do just that.
Hire a Probate Attorney When You Are Ready to Make Your Will
Some people assume that hiring a probate lawyer means that you fully expect your heirs to battle it out in court over who gets what. It can create a lot of hostile feelings among family members who do not know that a probate lawyer is present for many other reasons besides the contesting of a will. The probate lawyer helps you make the will, and he/she also helps distribute money and assets to your creditors after you have passed away. Once heirs understand that you do have debt and that you do not want to burden them with that debt, they will more than likely settle down.
Appoint an Executor
Your executor can be your probate lawyer, but in the best interests of your heirs, the executor should be someone who is not related to your lawyer. It helps everyone stick to their ethics and values and prevents excess conflict. You may also want to appoint a non-family member to avoid creating schisms in the family dynamic. A very close and trusted friend would provide the right balance of familiarity and fairness without your chosen executor carrying any vested interest in what you have left behind.
Pay Off As Much Debt as You Can
The whole point to having a probate attorney is so that your remaining debts and final expenses (e.g., coffin, funeral services, etc.) are paid. Of course, you already know that your debts will not be paid in full. Your executor should also know the extent of your debts, and that your final wish is to leave something for your heirs that does not include debt. Both your executor and your probate attorney will advise you to pay down as much of your debt as you can. It might help to liquidate some assets to reduce your debt load, and then you will have a better idea how much you can leave and to whom you should leave it.
After You Have Passed
After you have passed and all end-of-life expenses have been paid, the probate lawyer will present your will to the court to affirm its legitimacy. Your executor should be in attendance. At this point, any debt you had left needs to be paid before your heirs can receive their inheritance. Depending on the docket schedule, this could take a few months or a couple of weeks. When the debts are paid in full, your heirs, the executor of your will, and the probate attorney will have a reading of the will.
The Reading of the Will
The reading of the will reveals which of your heirs received which possessions and assets. If anyone wants to contest what he or she received, this should have happened at the probate hearings. However, some states do allow a delayed contesting of the will. Otherwise, whatever you have managed to save before death is distributed.
All of your heirs receive most of what you had originally expected them to receive when the debts are paid and all court and legal fees have been paid. With any good fortune, there will be an adequate amount of assets per each of your heirs, if you intended the assets to be distributed equally. If the distribution was meant to be uneven, priority is often given to the heir you wanted most to have your worldly goods.