Yes, You read that title correctly. If you die without having a VALID, written will, you technically die INTESTATE. This means you die without a Will. But the situation is even worse than you might think. If you die without drafting a will, the New York State goverment has a will already for you. It’s called INTESTATELAW and the State government will dictate the disgtribution of your estate. And for the business owner, this include the full value of your all your business interests. More threatening are the facts that New York State Intestate laws are very complicated and rarely do they coincide with the wishes of individuals.
Before we go any further, I must make note that you can not do a HOLYGRAPHIC WILL. This is a will you write yourself and perhaps leave it in a safe deposit box. New York probate courts will not accept such documents. They are simply not valid.
As a business owner,it is imperative that you draft a will. Keep in mind that the will can always be revised. Additionally, I would not consult just any attorney. Rather I would work with an Attorney who is versed in Elder and Estate Planning Law. This is critical for everyone but more especially for the business owner.
Can you think of anything worse than having your business interests and all other property decided by the State? Complications could worsen if you have a partner. Specifically,you may want to pass your interests to your children and not your partner. However, the states may and often do think differently. Here are some other timebombs waiting to happen without a valid will.
If you have minor children, the states will apoint a GUARDIAN. Here again the states may not select an individual that you may want! Any money used to pay for your children’s education and support will have to be approved by the State. Furthermore, the courts would require an annual reporting of all INCOME and EXPENSES. This might severly limit your investment options. Let me offer an example.
Let’s say you die and have a Life Insurance policy. If the courts appointed someone, and that person may be even someone you would approve of, the courts may require the representative of your will to invest the Life Insurance proceeds in a safe money market account at a bank. You, on the other hand, may wish the account be invested in a balanced growth mutual fund to get a more accepable rate of return.
Please also consider this. With regards to your business, you probably will not have the benefit of any tax planning for your business. Lastly, the courts will tie up the ultimate settlement of your business and estate and could end up costing you more money than by simply drafting your own will.
For peace of mind and the future of your Business Succession Plan and family, take the time to draft a valid will. I am not an Attorney but I do work with many highly-skilled lawyers in our area and would be more than happy to suggest a few for you to interview.
For the future success of your business and investments, DRAFT A WILL!