Recessions are tough. We’re living closer to the financial edge and tapping into money we once thought was safely set aside for retirement and a legacy to our children. The pinch is universal, and it makes thinking ahead that much more important. Auto repair shops and handymen are busy with the new “repair, don’t replace” mantra. Now is a perfect time to tune-up your Wills and powers of attorney to make sure they are in tiptop shape. Here’s why…

Reason #1: Speed up the Process

In Georgia, probate can take just a couple of weeks if all of the decedent’s closest living relatives, called the “heirs,” are adults and consent to the Will’s validity, and if a Will is accompanied by a self-proving Affidavit. Without a valid Will, a surviving family member must either post a bond or wait for legal notices to be published for a month before earning the authority to act for the estate. By the time the notice gets delivered to the newspaper and the publication finishes, almost two months will have gone by. Even if you have a Will, not having a self-proving Affidavit means that one of its witnesses will have to be found before the Will can be probated. The witness will need to sign a set of questions called Interrogatories confirming that he or she saw the Will being signed. These steps can slow the probate down and keep your assets from being distributed to your family members in time to meet their needs.

Reason #2: Keep Transfer Costs Down

The costs of probate in Georgia depend heavily on whether a person had signed a valid Will, and whether the Will was drafted with Georgia law in mind. A Will should appoint an Executor and waive bond. The Will should also grant the Executor the fiduciary powers needed to sell real estate and to serve without filing an inventory or annual returns. A Will that lacks these ingredients may be valid, but create substantial extra expenses for the Executor. In some families, expensive conflict can be avoided by setting up assets to flow to beneficiaries outside of probate. Trusts set up to hold assets are immediately available to your beneficiaries. Another easy, no-cost method of adding flexibility is to update beneficiary designations so that there is both a primary and a contingent beneficiary on all life insurance and retirement accounts. Be careful, though, never to name a minor as a beneficiary. Choose a Trustee to hold funds for them instead.

Reason #3: Giving is Golden

When asset values and interest rates are both low, there is a rare opportunity to transfer wealth down to future generations with a minimum use of gift and estate tax exemptions. Since a greater estate tax planning benefit comes from a steady stream of asset transfers when compared to a sizable one-time inheritance, starting a gifting program now makes the most sense from a long-range estate tax planning standpoint.

by Chris Miller

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Christopher Miller is an attorney with Robinson & Miller, PC in Alpharetta.

For more information, contact him at 770.817.4999 or   cmiller@robinsonmiller.com.