Drawing up a will touches on some of our biggest fears and anxieties. There’s the matter of our mortality, of course, and that dreary topic is in no way lightened by the fact of bureaucracy. No one wants to spend their time filling out forms and filing paperwork while contemplating their ultimate demise, but neglecting estate planning only postpones the inevitable and puts the burden to untangle assets on a grieving family.
Estate planning doesn’t have to be painful. It’s an opportunity to reflect on your successes and achievements, to appreciate the relationships that you’ve built over your lifetime so far, and to evaluate your legacy. Breaking a will into its major components for consideration can help to take the teeth out of estate planning.
Assets
Your last will and testament determines the distribution of most of your assets though some may fall outside of the scope of the will. Joint property held with a spouse and beneficiary-designated accounts like life insurance and IRAs, for example, do not pass through probate. The first step in executing your will is identifying those assets that do fall within the scope of probate.
Traditionally, assets have included financial assets such as bank accounts, investments, and real estate properties. However, in the modern era, assets may also include digital properties such as social media accounts and, with the flourishing of fertility treatments and DNA research, biological assets such as genetic material.
Beneficiaries
While a modest estate may have a single beneficiary, numerous individuals and organizations may benefit from a larger estate. You may choose family, friends, neighbors or your favorite charity to receive your property after you pass away.
In most cases, married couples name one another as beneficiaries of their wills, and in common law states, spouses cannot be completely disinherited. Community law states like California and Arizona, however, do not grant the same protection.
Children are not granted the same legal protections regarding your estate. You can completely disinherit a child to prevent them from benefiting from your estate. On the other hand, you are free to leave both biological and stepchildren property if you so choose. If the children in question are still minors, however, a legal guardian will be responsible for the property until the child turns 18.
Dependents
If you have children, you’ll identify their legal guardians in your will. This person will care for your child’s needs in your absence, including their education and healthcare. While this person will exercise some control over your child’s finances, it’s a good idea to designate a separate trustee to manage their assets until they’re old enough to do so themselves. Assigning a separate legal guardian and trustee ensures there’s no conflict of interest when it comes to your child’s best interests.
If you have an elderly parent that you provide care for, your will should also address how he or she will be provided for in the event they outlive you. This prevents an uncertain future for an aging loved one.
Execution
Selecting an estate administrator, or executor is an important consideration as you draw up your will. State laws dictate who is allowed to serve as your representative in this capacity and who may not, but every estate that goes through probate must have an executor. If you do not designate one, the probate court will do so on your behalf.
Legal Counsel
Each state has its own probate laws, and if your will doesn’t follow the letter of your own state’s laws, it’s not valid. That can lead to stress, confusion, and hardship after your death. While many websites offer DIY wills, these are usually not state-specific, and often, they aren’t finalized correctly. Consulting an estate lawyer ensures your will is properly executed, saving your loved ones heartache down the line.
Contact the Law Offices of Jeffrey Lohman to learn how we can help you plan your estate.