Millions of Americans have no estate plan in place. Many people believe that estate planning does not matter unless the person is older or is very wealthy. However, all adult Americans can benefit from having a will. The most simple variety of will is a “simple will,” and it is a great option for many younger Americans without much in the way of assets.
However, there are certain things that a simple will cannot do. According to FindLaw, if you are looking for a way to manage your money after death or set up a special needs trust, a simple will does not suffice.
Money management after death
A simple will is good for giving basic instructions for your assets after you die. However, if you are looking to do something more complex with your assets outside of naming a beneficiary, it is unlikely that a simple will can handle this.
For example, You may wish to establish a trust for your children or grandchildren to provide income for them after you die. This sort of money management plan is too complex for a simple will. With a simple will you can pass down assets but not manipulate them post-mortem.
Special needs trusts
If you have a disabled child, setting up a special needs trust is extremely important. This is because if you die and your child gets money directly from your inheritance it can cause your child to lose Medicaid coverage. If the government gives your child Supplemental Security Income (SSI) benefits, these are also at risk if you leave your child a large sum of money. In this instance, a simple will does not provide the necessary functionality to protect your child.
