Secure Your Loved Ones’ Futures with a Will
Everyone knows they need a will, but not everyone makes the time or effort to put one together. Your family will be the ones to suffer, though, if you don’t plan ahead.
If you die without a will, or “intestate,” the state you live in decides how to divvy up your property. The court follows a formula to determine who gets your precious assets, and you won’t have any say in the matter. That’s a risk you don’t want to take.
Besides letting you decide who gets your cherished possessions, a will allows you to:
- choose the person who will administer your estate.
- name the guardian of your minor children.
- create trusts to ensure your children are provided for without the court stepping in.
- plan your estate to ensure greater tax savings for your heirs.
Do it now. Draw up your will as soon as possible. Although sound health is not required, a sound mind is. “The minimum requirements for being mentally able to write a will are that you understand what property you own and who your family members are,” says Georgia estate attorney Karen C. Gainey. A mentally incompetent person may have a clear moment where they write or change their will, and that will is legally valid, she says. But others may disagree and decide to contest it, setting the stage for a legal battle.
Plan ahead. Before drawing up a will, consider meeting with a financial planner. “You need to sit down and identify specific assets you want to go to specific people, and the means by which those assets should be distributed,” says Bob Weigand, president and CEO of CIMA Wealth Management, a financial planning company.
A will is one way to give away your good china, baseball card collection, tools, or other personal property to the people you love. But a will also allows you to set up trusts for your spouse, your children, and even charities. That way Uncle Sam gets as little of your estate as possible. Meeting with a planner will help you organize your finances and determine the best way to distribute them in the will, Weigand says.
Review periodically. Any change in your lifestyle or economic status should prompt you to review your will. If you lose your job; get promoted, married, or divorced; have a child; or acquire additional properties or assets, you’ll need to take a fresh look at your situation.
“It doesn’t mean you’ll make a change, but you should at least review it, so you can see how it puts it into perspective,” Gainey says.
Weigh the cost. You can set up your own will (see the following story) or you can have an attorney put one together for you.
“To set up a basic will — truly basic with no trusts — the expense probably ranges from $100 to $300. This price often includes a financial power of attorney and healthcare power of attorney,” says Gainey. The cost of a complex will can go as high as $1,000 or more.
Usually those with larger, more complex estates can afford the steeper fees. Still, at any price, a will is worth the peace of mind knowing the important people in your life will be cared for when you’re gone.
© FCA Publishing
