Last Will and Testament

[cd1977]

Hi,

 

I am 27 years old and am wanting to prepare a Willor Trust. My wife doesn't work and I have 3 small children. I also have a life insurance policy for about 300K. My house is about 100K and I have about 30K in credit card debt. My question is that if I were to die tomorrow, would my debt be left up to my wife to be responsible for or will the Life Insurance policy take care of it? My wife isn't on the title of the house or vehicles. She isn't working right now either. How would I go about getting her added to the title of the vehicles and house or is it possible?

 

Thanks,

 

Chris

[keepmine]

Your estate is reponsible for final expenses. The life insurance will pass directly to your wife and avoid probate and she can do with as she wishes.

As it stands now, the creditors would have a claim against your home, car and any other assets in your name. If you're in a community property state, this will likely be a different story.

Contact your probate judge's office to see what the procedure is in your state to add someone to a deed or auto title.

I'd also suggest you see a lawyer.

Also, this is just a real personal opinion but with 3 small children and a sahm, you don't have nearly enough life insurance.

[rpatty]

Gotta agree with keepmine. A popular number is to have 10-12 times your annual salary in life insurance, so that in theory the interest on the sum alone is enough for your family to live on, without touching the principal.

[Quit Screwing Me]

I'm taking everything with me.

 

j/k.

 

I have no life insurance. I'm going to continue to live dangerously that way for about 3 more years, and if I'm still around, I'll get some term life insurance. Right now, if I drop dead, the creditors have take whatever they want.......no wife, no kids, all relatives live out of state.

[madflower]

I'm taking everything with me.

Me too.

 

However, I would carry just enough term life insurance to cover the outstanding bills and make your wife and kids get their own jobs. =)

 

Seriously if the house and car are paid off and since the chances of you dying are fairly slim as you are fairly young, and acitve (at least sexually). Why give the insurance company your money? Drop the difference into a separate account(s) with their names on it. Even if you do die, chances are it will be a fatal crash, or something they can sue for.

 

Without a mortgage, you have cut the biggest expense out of their lives and they can always sell it.

 

If you don't die after 30-40 years they all have nice retirements built up thanks to you. =) plus your house will be paid for. =)