A Couple Considers the Ramifications of Dying Intestate Morgan Moody of Dallas,

Question

A Couple Considers the Ramifications of Dying Intestate

Morgan 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 fishing 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.

(a)

List four negative things that could happen if either Morgan or Joshua were to die without a will.

(b)

What would be the most important negative consequence of not having a will if both Morgan and Joshua were to die together in a car accident?

(c)

Which assets could be jointly owned so that they will automatically transfer to the other spouse if either Morgan or Joshua dies?

(d)

What qualities should Morgan and Joshua look for when naming the executors of their wills?

(e)

Explanation / Answer

a) In case, either of them dies without a will (it means you died "intestate") then -

- As per the laws of that state/country, the property will be given to his/her heir or it'll be confiscated.

- It'll create personal tensions among the family people.

- It'll create confusion among people as who'll be their heir

- Negative tax consequences

b) If both died, the worst that can happen is that the property will be under state laws where there is a chance of confiscation of all property or be donating to NGO.

c) Joint Accounts

d)the one who can easily handle the case or argument.

e) Moody should keep those documents very safely so that no one else can have a look.

It can be stored in a safe or at a very safe place.

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