Every will should be customized, very customized, to the individual. Whether there are millions of dollars in assets or less, every will should include the following. If you are considering drafting or updating your will, think about what you would include under each of these categories. You might be surprised that you have more assets than you think.
WHAT’S IN
- Distribution of assets
We have all seen the movies where the heirs are gathered around (often in a large, luxuriously appointed library), where the family’s long-time attorney discloses the details of the will while the loved ones anxiously await. Will they get anything? Will they get it all? What will they get? While your situation is not likely to create high drama, this is one of the prime reasons for having a will (aside from avoiding probate) to ensure your hard-earned assets are distributed as you want (and not necessarily how the state would distribute them). Your assets include property, money, personal belongings, and so forth. - Appointment of an executor
When you make out a will, you need to name an executor, the person responsible for carrying out the instructions in your will and settling your estate. Often, it is a family member such as an adult child or sibling. It is up to you. There are rules, state by state, as to who can and can’t be an executor. Your estate planning attorney will help ensure whoever you choose is legally ok. - Guardianship for minor children
To me, this is mission-critical. If you have young children, you must designate who will care for them if you pass away. Even if you are married. No one wants to think about it, but what if you and your spouse are both killed in a car accident? Who will raise your child? If you haven’t done so already, I strongly encourage you tend to this. None of us knows what the future holds. If you don’t appoint a guardian for your child, the state will. You know best … not the state. - Specific bequests
Often, the makings of family disputes lie in how this is handled. Think about family heirlooms, vintage cars, and valuable jewelry. We have all seen families literally disintegrate over feuds about who should have gotten an item. Often, these items have more sentimental value but can cause so much suffering as family members fight over them. It even costs money if it goes to court. If there might be issues with some of your assets, head them off by including specific bequests AND communicating your decisions to your beneficiaries so they understand why. It is the caring thing to do. - Residuary clause
This is a sort of “catch-all” provision in your will that distributes the remaining assets not already gifted elsewhere.
WHAT’S NOT IN
- Beneficiary-designated assets
Life insurance policies, retirement accounts, and payable-on-death bank accounts pass directly to named beneficiaries and are not included in your will.
- Instructions for incapacity
Make no mistake: your will does not control decisions when you are alive but unable to act. Those are handled through documents like a power of attorney and a health care directive. If you do not have these documents, please take the necessary steps to obtain them. It is not a long, expensive, or complicated process to acquire these legal instruments, but without them, you could be leaving your loved ones a complex and challenging situation.
If you already knew all of this, good for you! Maybe it has motivated you to think about your will and take steps to create or update it. (Sometimes having an out-of-date will is worse than no will at all!). I would be honored to help you with your estate planning needs, ensuring your hard-earned assets and loved ones are protected. Please call me at 513-399-7526 or visit my website www.davidlefton.com to schedule a meeting.