The only certain things in life are death and taxes — we’re sure you heard that phrase before, and it’s just as certain that none of us really like talking about either subject. This is precisely why the conversation around establishing a will can be tricky. As a close friend or family member, initiating the conversation of a will with a loved one can be daunting. However, it’s typically best for everyone involved if you establish a will as soon as you can and avoid putting this important task off until later. Here are 7 questions — and our answers — to help explain why making your will is so important.
What is a will?
A will is a legal document where you, the testator, establish who manages your estate after you pass. The manager of the estate is called the executor, and will make decisions on your behalf on the estate. Although most know that a will can be used to determine who gets specific items of an estate, a will can also be used to determine guardians for minors or dependents.
Why do I need one?
A will provides clarity and direction for friends and family. The only thing worse than losing a loved one is subsequent contention about what happens to their personal items. Giving your loved ones clear instruction on how to handle items after your passing can provide some peace of mind in what may already be an emotionally difficult situation.
What happens if I die without a will?
You’ll become what’s called “intestate.” This means your estate will be dispersed and settled according to your state laws. Your estate will enter probate, the process in which a court appointed administrator will determine, according to the letter of the law, who receives what from the estate. Eventually the estate will be passed on to beneficiaries, but this intermediary process will cost both time and money. Probate typically costs you an additional 3-7% of the estate value itself and the process can take anywhere from 3-6 months up to several years. It also means that a stranger is divvying up a loved one’s assets.
How do I make a will?
Although you don’t legally need an attorney to create a will, it’s recommended that you enlist the help of a professional. An attorney can provide advice and estate planning tips that can ease your tax burden. Should you choose to go it alone when start writing your will, do some research or pick up a book on estate planning for guidance.
Do I need anything else in addition to a will?
In most cases, a well constructed will can provide general protection from probate and keep your estate out of the court system. However, if you are looking for more specific instruction for family members, or if you have special circumstances surrounding your estate, you may want to seek out additional estate planning items such as living trusts or a letter of instruction. Here’s a list of key estate planning items to consider.
Do I ever have to update my will?
Depending on when you create your will, you may update it multiple times or never at all. As with most financial documents and items, you’ll want to revisit your will with any major life changes.
Is there ever a time where a will is unnecessary?
You could make a case that someone who is unmarried and has no dependents does not need a will. However, even without direct beneficiaries, the individual in this case would lose control over his or her assets after passing, leaving behind a potentially messy legal situation for loved ones to deal with. Ultimately, because life is unpredictable, there really is no bad time to create a will and the best time is now.
photo by Juli
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