In an unpredictable world, having a will is one of the most important steps you can take to protect your loved ones and your legacy. While contemplating end-of-life matters can be uncomfortable, creating a will is a crucial act of care for those you’ll leave behind.
What is a Will?
A will is a legal document that outlines your wishes for the distribution of your assets and the care of any dependents after your death. In simple terms, it allows you to decide how to divide your possessions and income between those you care about. It’s a powerful tool that allows you to maintain control over your estate and ensure that your final wishes are respected.
Under state probate laws, a will becomes a matter of public record after your death, and its instructions are carried out by an executor of your choosing. This person is responsible for managing your assets, paying any debts or taxes, and distributing your possessions according to your wishes.
Benefits of a Will
Creating a will offers many advantages that can provide peace of mind for you and your loved ones. One of the primary benefits is the ability to control how your legacy is divided. A will allows you to specify exactly how you want your property to be distributed. Without a will, your estate will be divided according to state laws, possibly in ways you would not have intended. For those with children (under the age of majority or with special needs), a will is crucial for naming their guardian. This document ensures that you and your partner, not the court, decide who will raise or care for your children if something happens to you both.
A well-crafted will can also help minimize family conflicts. By providing clear instructions about how you want your estate handled, you can prevent disagreements among family members that often arise during the emotional time following a loved one’s passing. Additionally, a will allows you to leave a lasting legacy by supporting causes you care about. You can specify gifts or donations to charities or organizations that are important to you, ensuring your values continue to make an impact even after you’re gone.
For business owners, a will serves another crucial function: it can outline your plans for the company’s future. This foresight ensures a smooth transition and can help preserve the value of your business, protecting both your legacy and the livelihoods of those who depend on the business.
How to Establish a Will
Creating a valid will involves several important steps. The first step in establishing a will is to ensure you meet the legal requirements. Though these may change depending on your state, by and large, an individual must be at least 18 years old, and be “of sound mind and memory” to make a valid will. Establishing mental fitness can be an important step if your will is ever challenged. Working with an experienced estate planning attorney can provide invaluable guidance, ensuring your will is legally sound.
Next, you will need to do an inventory of your possessions and finances, also known as assets. This inventory should include everything from real estate, bank accounts and investment portfolios, to personal items. Be aware, your assets can extend to things that you may not have considered. Pets should also be included in this list, as they are considered property in most states. Certain accounts, such as a 401(k), and an individual retirement account (IRA) can also be inherited by your beneficiaries. Under the federal Employee Retirement Income Security Act (ERISA), your spouse may have rights to certain pension benefits as well.
A comprehensive inventory will help you make informed decisions about distribution and ensure no valuable assets are overlooked. An experienced estate lawyer can greatly assist in this process, possibly identifying assets and income you might not have considered, as well as warning you of possible tax exemptions. A carefully constructed will can play an important role in tax planning. With your inventory in hand, you can decide on beneficiaries––the people who will inherit these assets. Take the time to consider who you want to divide your possessions between, whether they’re family members, friends, or charitable organizations. Additionally, If you have children, your will should name a guardian who will care for them in the unfortunate event that both you and your partner are deceased. You should be specific and intentional about your desires. An attorney can help you understand the implications of your choices and can suggest strategies to achieve your goals while minimizing potential conflicts between your inheritors.
Choosing an executor is another important decision when writing your will. This individual will be responsible for carrying out the instructions in your will. It is important to choose a trustworthy person who is both willing and capable of handling this responsibility. While many people choose close friends or family, one can also request a professional—such as a lawyer or an accountant—to oversee their estate.
Once you have considered all these factors, it is time to put your decisions into writing. In the majority of states a valid will must be in writing, signed and witnessed by at least two individuals, and notarized. Once your will is signed, it should be stored in a secure location. Inform your executor and close family members where to find it. While it’s technically possible to write a will yourself, working with an experienced professional is highly advisable. They can ensure your will complies with all relevant state laws and accurately reflects your wishes. Moreover, they can help you navigate complex situations, such as blended families or business ownership, that might complicate your estate planning. Finally, remember that a will isn’t a one-and-done document. Life changes such as marriages, divorces, births, or significant changes in assets may necessitate updates to your will.
Conclusion
Creating a will is a fundamental step in protecting your legacy and providing for your loved ones. Throughout this process, an experienced professional can act as your guide and advocate. They can help you understand complex legal concepts, avoid common pitfalls, and create a comprehensive estate plan that goes beyond just finances. With their expertise, you can have confidence that your final wishes will be respected and your loved ones will be provided for according to your desires. Feel free to reach out to a member of our team with any further questions you may have.
Contributions to this blog by Alon Sanders.
