Childless Couple With $2M in Retirement Accounts Ask: Do We Need a Will?
A married couple in their 50s with $2 million in IRAs and 401(k)s questions whether estate planning is necessary without children.
A couple in their 50s with no children, no debt, two homes, and roughly $2 million spread across IRAs and 401(k) accounts are asking a question that financial planners hear more often than many people expect: Is a will actually necessary when your financial house appears to be in order?
The short answer from estate-planning professionals is almost universally yes. Retirement accounts such as IRAs and 401(k)s pass directly to named beneficiaries and technically bypass a will — but beneficiary designations must be kept current and correctly documented. If a designation is outdated or missing, assets can end up in probate or distributed in ways the account holder never intended.
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The couple's situation carries added complexity. Beyond their primary residence, they own a vacation home and a property in another state that belongs to the wife's mother. Real estate held across multiple states can trigger ancillary probate proceedings — a separate legal process in each state where property is located — making an estate plan not just advisable but potentially essential for minimizing delays and costs for surviving heirs or other beneficiaries.
For married couples without children, the question of who inherits becomes more consequential, not less. Without a will, state intestacy laws determine asset distribution, which may not align with the couple's wishes regarding siblings, extended family, charities, or other intended recipients. Powers of attorney and healthcare directives are equally critical documents for couples in this life stage, covering decisions that could arise well before death.
Estate attorneys generally recommend that anyone with property in multiple states, significant retirement assets, or real estate tied to a family member's name consult both a local estate attorney and a financial planner to coordinate beneficiary designations with broader will and trust strategies. Continue reading at MarketWatch.com
