Navigating the intricacies of your financial legacy can be a daunting task. Understanding the nuances…
Who wants to think about their own mortality? No one. However, it’s a fact of life. Failing to plan for your eventual death by writing a will—especially as a parent—can result in issues for your loved ones. If you die without a will, it can mean conflict among your survivors, as they attempt to see how best to divide up your assets.
Fatherly’s recent article, “How to Write a Will: 8 Tips Every Parent Needs to Know” says that families can battle over big assets like cars to small assets like a collection of supposedly rare books. They can fight over anything and everything. Therefore, remember to prepare and sign a last will and testament to dispose of your property the way you want.
Dying without a will means your estate will be disposed of according to the intestacy laws. That could leave your loved ones in the lurch. For instance, in some states, your spouse may only get half your estate, with the remainder going to your parents.
Writing a will is essential, and you should not try to do it yourself. Instead, hire an experienced estate planning lawyer. Along with this, keep these items in mind.
Plan for Every Scenario. When doing your estate planning, consider the various scenarios and contingencies that can happen after you’re gone. A well prepared will includes when and where you want your assets to go. Be wise in how to distribute your assets, to whom they will be going and the timing.
Family Dynamics. You must be very specific when drafting up a will, especially if family circumstances are unique, such when there are children from previous marriages who aren’t legally adopted by a spouse. They could be disinherited. Work with an attorney to make sure they receive what you intend with specific details. If you and your partner aren’t legally married, your significant other could find himself or herself disinherited from your assets after you’re dead.
Designating Your Children’s Guardian. If you don’t name a guardian for your children (in cases of either single parenthood or where both parents pass away), the state will determine who gets your children.
Specificity. Your will is a chance to say who gets what. If you want your brother to get the baseball card collection, you should write it down in your will or it’s not enforceable. In some states, you can attach a written list of these personal items to your will.
Health Care. Begin planning your will when you’re healthy so that, in the event of disaster, you will have a financial power of attorney and a health care agent in place. If you become too ill to make decisions yourself, you’ll need to appoint someone to make those decisions for you.
Rules for Minors. Minors can own property, but they’ll have no control over it until they turn 18. If parents leave their home to their minor child, the surviving spouse will have issues if they want to sell it. Likewise, if a child is named the beneficiary of a life insurance policy, IRA, or 401(k), those assets will go into a protected account.
Don’t Do It Yourself. This cannot be emphasized enough. It’s tempting to create a will from a generic form online. But this may be a recipe for disaster. If your will is drafted poorly, your family will suffer the consequences. Generic forms found online are just that—generic. Families are not generic. Work with an experienced estate planning attorney to help you with what can be a complex process.
Reference: Fatherly (February 6, 2019) “How to Write a Will: 8 Tips Every Parent Needs to Know”
Suggested Key Terms: Estate Planning Lawyer, Wills, Letter of Last Instruction, Probate Court, Inheritance, Power of Attorney, Healthcare Directive, Intestacy, Life Insurance Policy, IRA, 401(k)