The Basics of 'I Love You' Wills

Disadvantages of 'I love you wills'

Unfortunately, even when there are no estate tax considerations, because of the value of the estate, the price to pay for the simplicity of “I love you wills” is that they may not take into account other intangible factors, including the following:

• Probate: Because an “I love you will” is just like any other will, it must go through probate, the court-supervised process of the distribution of assets, in order for your loved ones to receive anything from your estate.
• Privacy: A will is public record, so if you want your estate details to remain private, an “I love you will” won’t accomplish that.
• Other provisions: If you have minor children, for instance, your “I love you will” does not name a guardian for them. Your pets also would not be provided for through an “I love you will.”

On the other hand, all three of these concerns can be adequately handled through the use of trusts, whether they are revocable, irrevocable, or AB/ABC trusts for married individuals.

Time to make a will

When you are ready to make a will, be sure to consider all the relevant factors, especially tax consequences, before deciding on the type of estate planning that is best for you—it just may end up being an “I love you will” for the time-being.

Whatever you choose, remember that it’s important to revisit your will annually to make sure you have provided for any change in circumstances such as births, deaths, marriages and divorces among your loved ones. Only then can your last will and testament truly provide the peace of mind regarding the distribution of your assets that it should.

'I love you wills' FAQs

What is an 'I love you will' and how does it work?

An "I love you will” is a simple type of will that married couples use to leave everything to each other first, then to their kids. The basic idea is that when one spouse dies, everything goes to the surviving spouse. When that spouse dies later, everything then goes to their children. These wills use very straightforward language like "I leave my entire estate to my spouse, and when my spouse dies, our assets go to our children." 

Who should consider using an 'I love you will'?

These wills work best for married couples who have simple financial situations. You're a good fit if you have a modest estate (well under the tax limits), no complicated business interests, and straightforward wishes about who gets what. You should also have adult children rather than minors, since these wills can't set up guardianship or care arrangements. 

What are the main problems with 'I love you wills'?

The biggest problem is that your surviving spouse could change their mind. If they remarry, they could write a new will that leaves everything to their new spouse or anybody else. These wills also have to go through probate court, which means your family's private business becomes public record and could take a lot of time and money. Plus, these wills can't handle important things like who takes care of your minor children or what happens to your pets.

How does probate affect an 'I love you will'?

All "I love you wills” must go through probate, which is a court process that proves your will is valid and makes sure your debts get paid before distributing assets. This process typically takes six to 18 months and is completely public, so anyone can see what you owned and who got what. Financially speaking, your assets may not be available during the probate process, the court charges fees, and you'll likely need to pay attorney costs too. Some assets like joint bank accounts or retirement accounts with named beneficiaries can skip probate, but anything you own by yourself will go through this process.

What happens if the surviving spouse remarries after getting an 'I love you will'?

The surviving spouse can completely change or replace their will for any reason, including remarrying, which could leave your children with nothing. Since they now legally own all the assets you left them, they have the right to decide who gets those assets when they die. There are no legal protections to make sure your original wishes are followed once your spouse inherits everything.

Are there better alternatives to 'I love you wills'?

Yes, trusts are usually much better options, because they avoid probate and give you more control over what happens to your assets. You can set up multiple types of trusts, including ones to provide income to your surviving spouse while keeping the main assets protected for your children. These are called "survivor's trusts." Other helpful documents include powers of attorney for financial decisions and healthcare directives for medical situations.

When should you update or change an 'I love you will'?

You should review and possibly update your will whenever you have a major life change, including things like divorce, moving to a new state, having additional children, or the death of somebody named in the will. Big changes in your finances also matter, as you might need more sophisticated planning. Most experts recommend reviewing your will every few years.