Four Vital Items to Cover in Preparing a Will
by
Corey J. Orgeron on Jun. 29, 2017
Estate Estate Planning Estate Wills & Probate
Summary: For many families, a relative dying without a will causes significant strife, since a will names the legal guardians of the person's children - The last thing you want to have if you die is a fight over who's going to raise your children or how you wanted your money distributed.
Four Vital Items to Cover in Preparing a Will
Do you have a will? A typical response is, “People are living longer these days, I can put it off for a few more years.” Think again. Everyone should have an estate plan, and it all starts with a will.
A will is arguably the most basic part of an estate plan, which also includes a financial power of attorney, a healthcare directive (also known as a medical power of attorney or living will), and potentially a trust. As part of writing a will you must identify an executor or personal representative of the estate who will be charged with managing and wrapping up the decedent's affairs, which includes identifying and resolving all debts and filing his or her tax returns if necessary.
Dying without a will triggers intestacy laws, which means the state determines how a person's estate is distributed and how their assets are allocated. In other words, if you don't make a will, the state's law does it for you. Without a will a Judge may distribute your final assets in a way other than what you desire.
For many families, a relative dying without a will causes significant strife, since a will names the legal guardians of the person's children - The last thing you want to have if you die is a fight over who's going to raise your children. Also, family members are likely to have clashing views about how you wanted your money distributed. I’ve seen families torn apart over similar issues.
Below are four items to cover in preparing to make your will.
1. Don't make it yourself. Loads of websites offer programmed tools for do-it-yourself wills, but few people have a financial situation that's so simple they don't need a lawyer. A common issue with such websites is that they aren't state-specific. Often, self-prepared wills aren't signed and finalized correctly.
2. Identify your assets. Before meeting with a lawyer, take a comprehensive inventory of your financial assets: bank accounts, credit cards, retirement funds—the works. " In today's world, it's also essential to consider things that aren't traditional properties, like digital and biological assets.
3. Be careful in selecting guardians and trustees. If you have children, naming their legal guardians in the event of your death is a crucial part of the will process.
5. Beneficiary designations override wills. A number of accounts, such as IRAs, life insurance, and annuities, don't pass through probate. Instead, the owners name beneficiaries who will receive the funds through a separate document called a beneficiary designation. These beneficiary designations supersede anything specified in the will. Therefore, you should review your beneficiary designations with the estate lawyer when planning the will.
The final step: After the will is created, Meet with your estate lawyer every five years, as tax laws change frequently. Any time you encounter a significant life change—the birth of a child, a death in the family that impacts you financially, a milestone (such as retirement)—is also a good time to review your will.