The Ins and Outs of Wills

September 05, 2010, By Steve Thompson 0 comments

Most people think about the future from time to time, but usually in the context of achieving goals or reaching a stopping point in a project, or starting a family—positive things. You probably don't want to think about the day your number will be up, and I don't blame you.

Planning and writing a will isn't something you do for yourself, it's something you do for the people you love. It's a gift to your children and grandchildren, your spouse, your alma mater, your nieces and nephews. Without a will, you can't ensure your property and assets will be distributed according to your wishes.

Wills for the Common Man

You don't need to have millions of dollars in assets to write a will. Maybe you rent instead of own, or perhaps you've blown through your savings because of medical expenses or job loss. It doesn't matter. You can protect assets you don't even realize you have by writing a will.

Don't put off writing your will until you make your fortune. Instead, make sure your will is sufficiently broad to cover assets you might possess in the future as well as those you have now. Let's say you are a professional photographer, for example. You will want to name a beneficiary for royalties your estate might earn on your photographs after your death.

Parts of the Will

Every will is different, but most contain the same basic sections:

Title and declaration. At the top of your will, you should type the words LAST WILL AND TESTAMENT, followed by a declaration of your soundness of mind, your freedom from undue influence and your desire to revoke any wills written before this one.

Executor. You must name an executor in your will, someone who will be in charge of following your directives and to manage your estate after your death. While your spouse might be the first choice, keep in mind that you will need an alternative executor should she pass away first. Your attorney, your best friend or your child can also be your executor.

Beneficiaries. These are the people to whom your property and assets will be bequeathed after your death. In most cases, your spouse will be the primary beneficiary, followed by children and anyone else you wish to include. Keep in mind that you must be clear in naming beneficiaries to avoid conflicts in probate.

List of assets. Your will should also include a list of all your assets that do not already have named beneficiaries. Bank accounts, for example, often have payable-on-death clauses that name a beneficiary, so these do not need to be included.

Bequests. Do you want your son to inherit your collection of baseball cards? Do you wish to leave your home to your daughter? Specific bequests can also be made in wills.

Funeral directives. Do you want to be cremated instead of buried? Do you wish to be buried with your spouse? You should put any of these specific funeral directives in your will, along with how they will be financed.

Again, wills are complex documents that will change depending on the person writing them. It is always best to consult an attorney to make sure all of your wishes will be honored.

Living Wills

The term "living will" is confusing, and many erroneously assume that they should include living will directives in their last wills and testaments. This isn't the case.

A living will provides directions for how your medical team should behave in a medical emergency. A do-not-resuscitate (DNR) order, for example, can be included in a living will and tells medical professionals not to resuscitate you in the event of heart or respiratory failure.

Children in Wills

If you have children who have not yet reached the age of majority, it is important to appoint a guardian for them in your will. This might be a friend or relative, but make sure you discuss this with your guardians beforehand so there is no confusion later on.

Writing Your Will

Your will should be typed, signed and notarized. Before you finalize it, however, you should have it reviewed by an attorney who is familiar with your finances. Talk about your options and make sure all the language is clear.

Once you have written and signed your will, provide a copy to your attorney and keep another copy in your home. Make sure it is in a safe place where it cannot be destroyed (e.g., a fireproof safe), or keep it in a safety deposit box.

It might not be pleasant to think about or write a will, but you will feel much more secure once the process is complete. You will want to update it as circumstances change, but at least you know that your loved ones will be taken care of upon your passing.