Why Should You Have a Will?

I worked with an attorney to create my will after I got married. Since my divorce, I’ve updated where my assets will go after I pass away. Once I purchase my condo next year, I’ll redo my will to include it and the other assets I’ve acquired.

What Is a Will?

A will is a legal document detailing how your assets will be distributed, who will care for any dependents, and other relevant matters after your death. The document ensures your estate is handled according to your instructions and not subject to default laws.

Your will can designate an executor to distribute assets, address disinheritance, assign guardianship for dependents, and clarify gifts and donations. Seeking legal advice can be beneficial for creating a will, especially if your estate is complex.

Why Is Having a Will Important?

The benefits of having a will include:

• Asset protection: Safeguarding your assets from potential creditor claims ensures they are distributed to your beneficiaries rather than your estate.

• Asset distribution: Clarifying how you want your assets distributed after death ensures your loved ones understand and follow your final wishes.

• Charitable contributions: Leaving a legacy through charitable donations can provide tax benefits for your estate.

• Guardianship of dependents: Appointing a guardian for children under 18 years or other dependents ensures they are cared for by someone you trust.

• Tax planning: Planning for your heirs’ potential tax consequences can minimize your estate’s tax burden.

• Family disputes: Outlining your wishes reduces disagreements over inheritance or disinheritance.

• Probate: Providing a clear directive increases efficiency and cost-effectiveness in probate, the process completed when a person dies and leaves bank accounts, real estate, financial investments, or other assets to distribute.

Who Should Have a Will?

Anyone who has assets or dependents should have a will:

• Anyone with assets: Ensure your home, car, bank accounts, investment accounts, and other assets are distributed according to your wishes.

• Anyone with minor children: Your will should appoint a guardian to care for your children if you die before they turn 18.

• Anyone who has dependents with special needs: Ensure your dependents have an assigned caregiver.

• Anyone married or in a civil union: Name your spouse or partner as your beneficiary.

• Anyone single: Choose a person or entity, such as a nonprofit organization, as your beneficiary.

• Anyone over 65 years: The likelihood of dying increases with age.

• Anyone who wants to express their wishes: Clarify who should receive which assets and other final wishes.

What Are the Components of a Will?

The following components ensure a will is clear, enforceable, and accurately reflects the person’s wishes:

• Testator: A testator is the person detailing their wishes for asset distribution and care of their dependents upon death.

• Beneficiaries: Beneficiaries are the individuals or entities who inherit a specific share of the assets.

• Executor: The executor is responsible for carrying out the terms of the will, including managing the estate, paying debts and taxes, and distributing assets.

• Witnesses: The witnesses sign the will and attest to its validity. The required number of witnesses depends on state law.

• Signatures: The testator and witnesses must sign and date the will. The witnesses should provide their addresses.

• Declaration: The declaration is the statement at the beginning of the will that identifies the testator, confirms their age and domicile, and declares the document their Last Will and Testament.

• Revocation clause: The revocation clause states the will revokes the testator’s previous wills and codicils.

• Disposition of assets: The disposition of assets outlines how the assets will be distributed among the beneficiaries.

• Guardianship provisions: The guardianship provisions appoint guardians to care for minor children and clarify their duties and responsibilities.

• Special instructions: The special instructions might include funeral arrangements, who will care for the testator’s pets, or specific personal property bequests.

• Attestation clause: The attestation clause is signed by the witnesses to confirm they were present when the testator signed the will, that the testator was of sound mind and acting voluntarily, and that the individuals signed the document as witnesses.

Consulting with an experienced estate planning attorney ensures your will is legally sound, enforceable, and customized to your wishes and circumstances.

Note: This post is for educational purposes only.