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Do You Need a Will and How Can You Get One?

wills May 04, 2018

 

People ask me, “Do I really need a will? I mean, I’m young and healthy.  I don’t have to worry about that for a long time, right?”  I usually answer with, “if you don’t care where your children go and you don’t care who gets your assets when you die, then you don’t need a will.”  Accidents happen and I certainly do not want the state to decide who will be appointed guardian of my children and how they will be dispersing my assets.  I recommend a creating a will as soon as you have children or assets of any kind.

A Will is Not Hard to Create

Although most people believe otherwise, a Will is not hard to create.  There are software programs, apps, online services, and attorneys that can do the job.  Even so, it’s estimated that believe one-half to two-thirds of American adults do not have a Will. 

Who Needs A Will?

Wills are not just for the rich and wealthy.  If you have children, you need a will.  If you own anything, even a dog, and a $200 bank account, you need a will.  The amount of money and property you own doesn’t really matter.  What matters is whether or not you care about who will be taking care of those you love should something happen to you and whether or not you want to leave your money and assets, like your car, in the hands of the state or in the hands of someone you love.  It’s really that simple.

What Does a Will Do?

A Will is basically your voice after your death.  It states your wishes to those who have the power to disperse your assets and place your children.  In most cases, that is the state where you reside.  A Will doesn’t always guarantee everything goes as you instruct but it has the most influence in any case.  It is created to ensure that whatever assets or belongings you have go to family or the beneficiaries you designate. If you own a business, a Will can help facilitate a smooth legal transition of that business and its assets.  If you have minor children, having a Will is imperative.  A Will allows you to select your children’s legal guardian(s) in case you die.  It doesn’t have to be a family member.  It’s anyone you choose.  It may be something you don’t want to think about but once you have children, its something you have to consider. 

If you don’t have a Will, the court will make these decisions on your behalf.  It often turns into a stressful and lengthy process called Probate.  Assets (and children) can be stuck in Probate for months, even years.  Your assets can be drained by the court costs, as well.  The lack of this simple piece of paper can cause your family and loved ones unnecessary anxiety and confusion at what is already a difficult time.  

Having a Will can save time and money for those you leave behind.  It also lessens their burden of making tough decisions on their own.  Plus, there are tax benefits to a well-prepared Will, helping beneficiaries to avoid excessive estate taxes.

If You Have Children

As a parent, the most important thing you can do is to make sure your child is taken care if you can’t be there.  Having a Will is creating a plan for your child or children.  Consider things like an ex-spouse or grandparents when creating your Will.  The Will of a single parent should assure the transfer and management of non-probate assets to their minor child.  If your minor child is the beneficiary of your retirement plan or your life insurance policy, that property will pass out of probate straight to your child.  You may likewise consider appointing a separate guardian in regards to your child’s property or you can establish a contingent trust.

What is an Executor?

When creating a Will, you can and should include an executor, an individual who you really trust to follow your instructions.  They have the authority to make sure your wishes are fully carried out and also ensure that all of your affairs are in order.  They manage everything from your funeral arrangements to paying off your bills, canceling credit cards, and are basically the person you trust to run and delegate things after you are gone.

Gather the Necessary Information

When you begin to construct your Will, you will need to gather some information.  Here is a list of the most common information that needs to be put into your Will.  Be as accurate as possible.

For each person named in your Will, including your children, proposed guardians, executor, spouse, and other beneficiaries, you will need the following:

·         Name

·         Address

·         Date of birth

You will need a list of your assets, including well-detailed information about the following:

·         Savings i.e. bank accounts, CDs, money markets

·         Investments i.e. stocks, bonds, CDs, mutual funds

·         IRA, pension/ retirement accounts

·         Annuities and life insurance policies

·         Jewelry

·         Ownership interest in a business

·         Car, boats, planes, and other vehicles

·         Collectibles

·         Antiques

·         Furniture

·         Artwork

·         And other personal property

You will need to have records of your debts, including car loans, mortgages, student loans, credit card accounts, and business loans.

You will need copies of existing Wills, divorce decrees, trusts, prenuptial agreements, and other legal documents that could affect your Will, too.

Creating Your Will

You can create a simple Will yourself just by writing everything out on a notebook and having a couple of witnesses sign it but I recommend putting a few extra dollars into creating one with software to make certain it’s as legal as you can get.  There is software, like Willmaker, that can help you create your Will for as little as $10 at Office Depot or Staples, which usually carry older versions that still work.  A newer edition will run you $40 on Amazon.  You can also create your Will with LegalZoom for about $70.  Will Kits are available at bookstores, like Barnes and Noble, as well.  I suggest, if you don’t have an active Will yet, you should just do a simple Will now to get important things, like who you want as guardian for your children, down on paper. 

You can sit down in front of your computer with the information you’ve gathered and create a Will that is legal in your state in one evening.  It’s quick and easy, as long as you’ve gathered all the information first.  Follow the software’s instructions on how to get your Will signed and witnessed and you’re done.

Do you need a lawyer when preparing your Will?

If you have businesses, assets, and documents that are more complicated or you are not comfortable using software, then it is advisable you consult an estate attorney who may possibly work with a Certified Public Accountant (CPA) or financial planner to create your Will.

If you feel more comfortable with a lawyer handling your Will, gather and bring the information with you to their office.  They may also have a list of information they want you to gather.  Attorneys usually charge around $1000 for a Will but I’ve seen ads for a few hundred.  Some have packages that include Wills and Living Wills.  Know what you’ll be paying before going in but don’t pick an attorney based on price.  Do your due diligence in choosing one.

When Should You Update Your Will?

It is advisable and even best to revisit your Will from time to time or when certain major events have taken place to ensure that your Will still carries your desires.  Update it whenever you have another child, when you get married or divorced, or when you gain another major asset. 

This May Sound Funny But…

Don’t hide your Will.  If you keep it in a place where it cannot be found, it won’t be any good.  Make sure your loved ones have a copy or know where your copy is.  Keep the original with your attorney, the executor, or a trusted family member.  Keep them aware of any updates.

 

 

 

 

Michelle R Russell

© The Prosperity Process, LLC  

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