Question

Case 5

A couple considers the Ramifications of Dying Intestate

Yvonne Moody of Dallas, Texas, is a 34-year-old police detective earning $58,000 per year. She and her husband, Joshua, who is a public school teacher earning $44,000, have two children in elementary school. They own a modestly furnished home and two late-model cars. Morgan also owns a bass finishing boat. Both spouses have 401(k) retirement accounts through their employers, and their employers also provide them with group term life policies that match their salaries. Morgan also has a $100,000 term life policy of her own. The couple has about $5,000 in their joint checking account Neither has a will.

1. List four negative things that could happen if either Morgan or Joshua were to die without a will.
2. What would be the most important negative consequence of not having a will if both Yvonne and Joshua were to die together in a car accident?
3. Which assets could be jointly owned so that they will automatically transfer to other spouse if either Yvonne or Joshua dies?
4. What qualities should Yvonne and Joshua look for when naming the executors of their wills?
5. Once they have completed and signed their wills, where should the Moody’s keep the original documents?

Answer 1

Disadvantages of dying without a will:

• The government takes a portion of the estate.
• No opportunity to select guardians for the children.
• Legal fees and court fees are very expensive in comparison to cost of making a will.
• One is unable to include or exclude any beneficiaries.

The worst consequence if both Yvonne and Joshua die in a car crash would be that their heirs would not be entitled to the complete property of the parents.

Their home could be jointly owned so that it would automatically transfer to the other spouse in case of one's death. Also, it is already given that the bank account is jointly owned.

The executor should be :

• loyal to the family
• practical and free from biases
• unselfish and not greedy
• organized and disciplined

The original documents could be kept with either the executor or the Probate Registry.