What happens to our money when we die?

[Leo]

My wife and I combine net worth is around $125,000 right now including retirement, vehicle, cash, etc. I know its not a lot and we are still young but I'm curious what happens to our asset/wealth when we both die at the same time? We don't have kids and of course we have different sides of family.

Is there something we should do right now?

[disneysteve]

My wife and I combine net worth is around $125,000 right now including retirement, vehicle, cash, etc. I know its not a lot and we are still young but I'm curious what happens to our asset/wealth when we both die at the same time? We don't have kids and of course we have different sides of family.

Is there something we should do right now?

Do you both have wills? That would answer your question.

[Leo]

We don't have a joint will and we don't have individual will. I guess a follow up question is, should we do a joint will and that's it?

[disneysteve]

We don't have a joint will and we don't have individual will. I guess a follow up question is, should we do a joint will and that's it?

It's best to have individual wills because it's rare that you both die together. It's much cleaner if the surviving spouse has their own will after the death of the first spouse.

[Thrif-t]

Also you should have beneficiaries on your accounts then they will go to whoever you want. Before I was married my parents were beneficiaries on my checking and savings account and 401k plan at work. When I married I changed to my DH, when we had kids they became the secondary beneficiaries.

[kork13]

I'm curious what happens to our asset/wealth when we both die at the same time?

Is there something we should do right now?

In your current state, with no wills? Lawyers bleed your assets dry in a long, drawn out probate process, then eventually either your next of kin or the state will be given what remains from the bloodsuckers--I mean, lawyers.

I say that tongue in cheek, but it's not entirely untrue. Without a valid will (I didn't realize joint wills were even possible, I thought they could only be individual), your assets would pass most likely to any next of kin identifiable. If none, or if the assets remain unclaimed, they will eventually be forfeited to the state. State laws dictate the exact process of how intestate assets are handled.

Just get a will set up for each of you. They're extremely common, and not expensive. For very simple wills, you can even prepare them online or with computer software. Even if your wills direct your assets to be handled "by law" (distributed according to your state's laws), it's better than dying without a will.

[MooseBucks]

Much cheaper to get a will and know exactly what happens to your money when you die. I don't recommend not using an atty but if you have no will even one you write up yourself now is better than nothing. Get a book from the library, google, anything is better than nothing.

[disneysteve]

Also you should have beneficiaries on your accounts

Yes! Definitely make sure there are beneficiaries named on all accounts that can have them.

[snafu]

You don't necessarily need a lawyer but you need someone at arms length to witness your signatures. Adequate forms are easily available online or at a stationary store. Horrible things happen, even in a small church in Texas...Immediately 3, items needed...

ADVANCE CARE DIRECTIVE, WILL, LIVING REVOKABLE TRUST

It's efficient to name specific, current holdings [retirement, bank/cash, vehicle, personal effects, but refer to them as [or future replacement]. Name benefactor and 'if pre deceased', another person or organization.

Get it done and give a photo copy in a sealed envelop to someone you trust like your mom.

[GrimJack]

I agree with previous posters and suggest that you keep in mind that whoever you list in your will could pre-decease you - there are ways to set up your wills so that you can have a cascade of beneficiaries. You really need to work with a lawyer who specializes to make sure that your family gets the money and not the state (or unknown cousins who come out of the woodwork).

[scfr]

Whether or not you do anything (such as create wills) depends on whether you care about what would happen to your money if you were to die.

If you don't care, the laws of your state will determine how the money is sliced up ... after fees have been deducted.

A distant relative of my mother died without a will, a single guy with no children. My mom and other relatives were tracked down by a company known as "heir hunters" and received a very small inheritance. The person who died was someone my mother barely remembered and did not care about. I don't know the details but I suspect that the entity that "made out" the best in the transaction was the heir hunting company. If you would be OK with a scenario like this, then there is no need to make a will. Some people just want enough to last enough for the rest of their lives, and what happens after that they couldn't care less.