Planning for the Future: How to Create a Comprehensive Will and Testament

Although it’s not the most comfortable topic, it’s important to plan for the future even if you are young and in great health. Many people put off writing a will, but drafting a comprehensive will and testament is an important step in making sure your wishes are carried out if you die or become incapacitated. Without a will, important decisions such as who will care for your minor children or who receives your assets might be left in the hands of the court. So how do you create a comprehensive will and testament? Consider the following tips:

Choose an Executor

An executor will be responsible for making sure the terms set out in your will are carried out appropriately. Since they will be managing your financial affairs, choose someone trustworthy who is capable of handling your estate and is willing to accept this role. It’s probably a good idea to name an alternate executor as well in case your first choice falls through.

Make a Detailed List of Assets

Assets are things that you own that have value such as real estate, financial accounts (e.g., bank accounts, stocks and bonds, retirement funds), personal property (e.g., car, boat, jewelry, heirlooms, art), cash, and business assets. Don’t forget to account for your virtual and digital assets as well. 

Designate Beneficiaries

How do you want your assets to be distributed? Be specific about the amount (or items) you want each individual, organization, or charity to receive. The more detail you can provide, the less chance for confusion and conflict.

Appoint a Guardian for Minor Children

For parents with minor children, one of the most important things to include is your choice of a guardian who will take care of them in your stead. Of course, you will choose someone you trust, but, if possible, try to find someone who has an existing (and good) relationship with your children. Make sure the person is willing and able to perform these duties in the long term.

Address Debts and Expenses

Your executor will use the assets in your estate to pay off any outstanding debts like mortgages, loans, credit card bills, medical bills, etc. However, it can be helpful to list your debts and expenses in the same way that you listed your assets to ensure that everything is covered and your beneficiaries will not be subject to creditors or legal action. 

Sign Your Will Properly

Make sure you understand your state’s laws regarding wills. To be legally binding, your will needs to be signed by you and at least two disinterested adult witnesses (i.e., not beneficiaries). In some states, the witnesses must sign in your presence while other states accept a signed affidavit.

Consult with an Estate Planning Attorney

Although there is software available to help you write a will, it’s always a good idea to talk to a legal professional. They can help you consider tax implications as well as estate planning tools that might be best for your situation such as a special needs trust, a living will, healthcare directives, power of attorney, and more. Your estate planning attorney can also safely store your will for you and set up regular reviews and updates to account for major life changes like getting married or having a child.

Schedule a free consultation with the estate planning group at Lonich Patton Ehrlich Policastri to get started on planning your future today!

 

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.