Will Power

Do you have a will? Up to two-thirds of Americans don’t. A will ensures that your personal property will go to a person/organization you designate. Failure to have a will means the courts will make that decision. If you have significant assets (the contents of your house, vehicles, jewelry, etc.) you want to go to specific individuals, or more importantly, if you have young children, you need a will. And the sooner, the better. If not for your peace of mind, think about saving your loved ones any kind of legal mess should you pass unexpectedly.

What’s the best way to go about setting up your will? Here are a few things to consider:

•    How big is your estate? Make a list of your assets to get a clear picture of what you have and how you want it divided.

•    Who will receive your assets upon your death? It could be family, friends or charitable organizations. These are your beneficiaries. Create a list so you can make note of what should go to whom. Be very specific to avoid any arguments later.

•    Who do you trust as the executor of your will? Choosing an executor is the most crucial part of creating your will. This person will carry out your directions and take care of paying off bills, filing any tax returns, etc. “Interview” candidates for this responsibility. And it is a “responsibility.” The person right will need the time and knowledge to take care of matters. Be sure the person you choose is willing to take on the position. You can name an attorney as executor, but there are charges associated with this alternative.

•    Who do you trust to watch over your children should something happen to you and your spouse? You’ll need to choose a guardian if you have children who are minors.

•    Paper? Software? Attorney? As far as actually recording your will, depending on state regulations, you can write out your will by hand or use special computer software. When in doubt, hire an attorney.

Keep your will current
Great, now you have a will. Your son, Tim, gets the coin collection. Daughter, Amanda, gets your jewelry. Your best friend, Sue, gets that Tiffany lamp she’s always liked. The rest is left to your husband. But what if your circumstances change? What if you get a divorce? What happens if you and Sue have a falling out? Much like your vehicle, your will needs regular maintenance. Experts recommend a review every 3-5 years to reflect any changes in your life, sooner if there has been a major change.

As mentioned above, the situation surrounding your will is likely to change at some point. Many things could happen that require you to make adjustments.

•    Relationships. This could be family, friends, organizations, etc. People come and go throughout your life. Births, deaths, marriages … new people enter/exit your life all the time. Perhaps a charitable organization now plays a big role.

•    Assets. Have you received funds from an insurance policy or pension? Have you started a business or yourself received a sizeable inheritance? Chances are your estate has changed in size.

•    Location. Have you moved? You may need to verify the validity of your will if you’ve moved to another state. State requirements vary.

•    Taxes. The one consistency about state and federal tax laws is that they are always changing. It’s best to consult an attorney about any changes that may have taken lace since you first drafted your will.

Some milestones at which to consider updating your will:

Marital status—Changes can happen in your lifetime when it comes to marital status. A spouse can die. You can divorce and remarry … more than once. If you fail to update your will, your estate could end up going to an ex. You could also unwittingly disinherit children from a former marriage.

Births—If you have children who are minors, who will watch over them should you and your spouse die unexpectedly? If you fail to choose a guardian yourself, the job will fall to the courts. You can also set up a trust to provide for surviving children. Review your will with the birth of each new child.

Having a will is a good way to be prepared. It may not save your heirs from heartache, but it will save them from estate headaches. Just remember, as your life changes, your will should evolve to reflect those changes.