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National Risk National Risk Management Management Education Education ConferenceConference

Phoenix, AZApril 17 & 18, 2007

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The Financial The Financial Risks of Risks of Dying Dying Without a Without a Will in Will in MontanaMontana

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Marsha A. Goetting Marsha A. Goetting Ph.D., CFPPh.D., CFP®®, CFCS, CFCS

• Professor & Extension Family Economics Specialist

• Department of Agricultural Economics & Economics

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Project Collaborators• MSU Extension • Montana Grain Growers

Association• Montana Department of

Agriculture• State Bar of Montana• School of Law, U of Montana

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Historical Progress

•Prior Grant–Managing Property Title Risks of Dying Without a Will

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Property Titles•Montana Specific

–Sole ownership

–Joint tenancy

–Tenancy in common

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Dad & Son: Property in Joint Tenancy

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Both Married

• Dad has wife • Son has wife

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Truck Accident

• Dad dies first

• Son dies

3rd day

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Team Question• Who receives the property?

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Truck Accident

• Dad dies first

• Son dies

3rd day

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Property Distribution

• 1/2 dad’s wife • 1/2 son’s

wife

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Survivor Lives Beyond

120 Hrs• Dad dies first

• Son dies 6th day

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Property Distribution--

son Dies on 6th Day

All to son’s wife

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Survivor Lives Beyond 120 Hrs

•Dad dies 6th day

•Son dies first

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Property Distribution: Dad Survives Son Beyond 120 Hours

All to dad’s wife

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Consequences of Joint Tenancy• All to dad’s wife

• All to son’s wife

• 1/2 to dad’s wife & 1/2 to son’s wife

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Estate Estate Planning for Planning for the next the next GenerationGeneration

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Targeted Audience

•YACC –2006

–2007

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Web site•www.nextgeneration.montana.edu

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Contents•31 MontGuides•FAQ•Discussion Club

–Book club approach

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Question• What % of Americans die without a written will?

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7 out of 10 do not have a will

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Age influence

• 50 - 54 44%• 70 - 74 75%• 80 + 85%

Age Percent

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Survivors : 3 children

S on

1/3S on S on

1/3

Dad

D au g hte r D au g hte r S on

1/3

Mom

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Survivors : two children & grandchild

1/3

S on

Son Son

1/3

H U S B A N D

D au gh ter D au gh ter Son

1/3

W IFE

Right of Representation

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Survivors : one child & grandchildren

1/3

S on

1/6 1/6

S on

H U S B A N D

1/3

W IFE

Right of Representation

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Survivors : One child & grandchildren

1/3

S on

Son Son

1/3

H U S B A N D

1/9 1/9 1/9

D au g h te r

W IFE

Right of Representation

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Survivors : one child & grandchildren

1/3

S on

1/6 1/6

S on

H U S B A N D

1/3

W IFE

Right of Representation

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Survivors : One child & grandchildren

1/3

S on

Son Son

1/3

H U S B A N D

1/9 1/9 1/9

D au g h te r

W IFE

Right of Representation

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The Financial The Financial Risks of Risks of Dying Dying Without a Without a Will in Will in MontanaMontana

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Interactive Web site

•Under construction–www.montana.edu/dyingwithoutawill/

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Key PlayersKey Players• Keri Hayes—very very KEY

–MSU Extension Publications Assistant & Web site developer

• Joel Schumacher–MSU Extension Economics Specialist: Reviewer

• Mary Anne Anderson–MSU Student Assistant: Reviewer

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Family Situations

•Single –13

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Family Situations•Single

–No Living Children –No Living Grandchildren –No Living Great-Grandchildren

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Family Situations•Single

–No Living Grandchildren–Have Living Grandchildren

–Have Living Great-Grandchildren

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Family Situations

•Single –Have Living Children–Have Living Grandchildren

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Family Situations

•Married– 22

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Family Situations•Married –

– No Living Children

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Family Situations•Married –

– Have Living Children

– Have Living Grandchildren

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Family Summary

•Single = 13•Married = 22

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Single Example:

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Example 1:

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Example 2:

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Married Example:

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Example

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Status

•Under construction–www.montana.edu/dyingwithoutawill/

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Medical Challenges

• Under Review

–Professor•School of Law University of Montana

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Next stage

•Develop CD for those with “slow” internet service

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Marketing•MGGA Grain News

•Montana Lawyer

•YACC Next Generation

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The Financial The Financial Risks of Dying Risks of Dying Without a Will Without a Will in Montanain Montana

Questions???Questions???