Reference no: EM133061711
Question - In the late 1980s, Carsten Richter, from Germany, migrated to the United States, where he is now a citizen. A man of many talents and deep foresight, he has built a large fleet of oceangoing oil tankers during his stay in the United States. Now a wealthy man in his 60s, he resides in Aspen, Colorado, with his second wife, Gabriela, age 50. They have two sons, one in junior high and one a high-school freshman. For some time, Carsten has considered preparing a will to ensure that his estate will be property distributed when he dies. A survey of his estate reveals the following:
Ranch in Colorado $1,000,000
Condominium in Santa Barbara 800,000
House in Aspen 1,500,000
Franchise in ice cream stores 2,000,000
Stock in Google 5,000,000
Stock in Wal-Mart 1,000,000
Stock in Silver Mines International 3,000,000
Other assets 200,000
Total Assets $14,500,000
The house and the Silver Mines International shares are held in joint tenancy with his wife, but all other property is in his name alone. He desires that there be a separate fund of $1 million for his sons' education and that the balance of his estate be divided as follows: 40 percent to his sons; 40 percent to his wife, and 20 percent to given to other relatives, friends and charitable institutions. He has scheduled an appointment for drafting his will with his attorney and close friend, Forrest Gauthier. Carsten would like to appoint Forrest, who is 70 years old and Carsten's cousin Heinrich Richter (a CPA) as co-executors. If one of them predeceases Carsten, he'd like First National Bank to serve as co-executor.
Does Carsten really need a will? Explain why or why not? What would happen to his estate if he were to die without a will?