Q: Why would I need a Will?

A: You should have Will and/or Trust if probate avoidance is appropriate (see below). If you have a minor child, a handicapped spouse or child, an important or difficult asset to manage, an unrelated friend to whom you wish to made a bequest, or if you simply do not like the “will” that the state of Wyoming writes for you. If you do not have a will, the laws of Wyoming in effect create a will for you. We call the state- created will the Will of John Doe, and you should click on it if you want to read the Will that the state of Wyoming provides for you.

Q: Will there be an estate tax or inheritance or “death tax” on my property when I die?

A: Wyoming does not impose an estate tax or inheritance tax. The federal government of the United States imposes an estate tax if your assets, including life insurance and any taxable gifts you previously made, exceed $2 million. These tax laws are undergoing significant debate and certain changes are scheduled to phase in. If your net worth exceeds this level, you should obtain advise about estate tax planning in order to minimize or eliminate the amount of tax that your heirs may have to pay after you die.

Q: What is probate?

A: Probate is the court-supervised process by which your Will is established to be authentic, your assets that are titled in your sole name are inventoried and appraised, your heirs and creditors are notified, your final bills and taxes are paid, and your remaining assets are distributed to the persons named in your Will (or the Will of John Doe if you have no Will). Your intangible personal property, such as cash, stocks and bonds, will be probated in the state where you reside at the time of your death. Real property will be probated in the state where the real estate is located.

Q: Should probate be avoided?

A: Most people think it is desirable to avoid probate because of the time and expense involved in completion of a probate in Wyoming (although in some states probate is quicker and less expensive). One of the bigger expenses is the statutory fee that is provided to the executor and the identical fee which is provided to the attorney for the estate, each being slightly more than 2% of the value of the assets being probated. Probate can take several months or even years to complete, and some families would prefer to avoid this. Probate does provide the advantage of having a judge readily available to resolve disputes, and it does provide certainty with respect to the manner and order for payment of creditors. The wisdom and value of avoiding probate is dependent upon each person’s own circumstances, but on balance it typically is more appropriate for most families to seek to avoid probate.

Q: I have everything in joint names with another person. That will avoid probate when I die so what is wrong with that?

A: That might be appropriate for you, but potential problems would include: (1) the creditors of the other person might have access to the assets even though originally they belonged 100% to you; (2) it doesn’t avoid probate if the other person dies at the same time or before you die; (3) it may complicate any estate tax or Medicaid planning issues that you might have; (4) there may be difficulties if a different person becomes your guardian or your agent under a power of attorney. Joint ownership of assets with a right of survivorship offers other advantages besides avoiding probate on the first death, but in many situations it may not be entirely appropriate.

Long Reimer Winegar Beppler LLP
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