By Attorney Raven Beach
An Alabama couple got married and started a thriving family business. We’ll call them Jane and John. Jane and John had two children. Life treats them well. Then, one day, John suddenly passed away, leaving no will. What happens to John’s assets? What about his bank accounts? Who gets John’s interest in the family home and business? The average person would assume that all of John’s assets would pass to Jane because the couple was legally married. The average person would also be wrong.
Under the Alabama law of intestacy, John’s assets belonged to Jane and their children upon his death. In this case, John’s estate had to be administered without a will. The probate judge appointed a guardian ad litem to protect the children’s interests. A guardian ad litem is an attorney who represents the interests of an incompetent person or a minor. Because the children had a legal interest in their father’s estate, Jane had to buy out said interest. This is a counter-intuitive result but is legally sound under Alabama law. If you do not make your wishes known before your death, the state of Alabama or (whatever jurisdiction you reside in at the time of your death), will decide for you.
Every adult should have a sound estate plan in place. Estate planning is critical because it clarifies what should happen to your property once you have passed away. Sound estate planning should also designate a person to make decisions for you during life if you cannot.
An estate plan consists of three essential documents: a will, a power of attorney for health care/advanced directive, and a power of attorney for financial affairs. A will is a document that directs how assets should be distributed after death. Powers of attorney for healthcare/finance are documents that address what should happen if you are unable to make medical decisions or manage your financial affairs while you are still alive.
Unfortunately, only about 32% of Americans have an estate plan. Let us all unite and collectively prepare for our future.
CONTACT INFO.
Raven Perry-Beach, Esq. 107 Jefferson St.
Suite 14
Huntsville, AL 35801 (256) 799-0292
* Licensed in Alabama, Tennessee, Massachu- setts, and DC
NO CLIENT RELATION- SHIP: Communication with an attorney does not by itself create an attorney-client relationship or constitute the provision or receipt of legal advice. Any communication from this office should be considered informational only, and should not be relied or acted upon until a formal attorney-client relationship is established by written agreement.