A married couple, Linda and Charles, have just learned about the death of their friend, Lloyd, and wondered whether Lloyd had provided for his family. Charles admits he doesn’t even have a will.

What would happen to their children if Charles died today?

Rick Fenelli, an estate planning attorney, explains that the first step in estate planning is to identify all of your assets. He reminds Linda and Charles that most people forget that estate planning is not just for the rich and famous.

Linda and Charles believe their net worth is not much, even though they own a home, a savings account, 401(k)s, and a few IRAs. Their attorney friend calculates that Linda and Charles have a net worth of about $1 million. The couple is startled. The attorney explains that they already have a will even though they never wrote one. The will is written by the state and it’s called “probate.” Dying without a will is called “dying intestate.”

Questions

1. What triggered Charles and Linda to start thinking about planning their estate?

2. According to attorney Rick Fenelli, what is the first step in estate planning?

3. Who writes your will if you don’t?