10 Things You NEED to Know About Writing a Will
Writing a will might sound scary, but it doesn’t have to be! Wills are important estate planning tools that allow your assets to be distributed according to your wishes after you pass away. Without a legally valid will, state laws determine how your estate is divided. Sadly, this means your assets might not go to the right people. Fortunately, a well-crafted will can help your loved ones avoid lengthy probate processes and prevent family disputes.
According to statistics, 68% of Americans don’t have a will. Many people might feel overwhelmed, confused, or even assume wills are only necessary for the wealthy. However, that couldn’t be further from the truth! Anyone who owns assets should have a will. But how should you go about writing one? Do you need to hire an attorney to draft a will? How often should you update your will? You’ve got questions, and we’ve got answers! Here are 10 things you need to know about writing a will.
1. A will clarifies your intentions.
Unless you’re a mind reader, you can’t tell what others are thinking. Of course, unless you write out your testamentary intent, your loved ones won’t know how to divide your assets after you die. According to Silberman Law Firm, testamentary intent is defined as “the intention of drafting a document that sets forth how property will be distributed upon death.” Put simply, this means writing down your wishes in the clearest terms possible. You should specify not only who inherits your assets but also how those assets should be managed if the beneficiaries are minors or financially inexperienced.
Your intentions should also include provisions for charitable giving. Additionally, if you own a business, you should outline succession plans. And don’t forget items with sentimental value! Include family heirlooms, such as photographs, furniture, jewelry, and other items, to help your loved ones avoid any future conflicts.
2. Be specific.
Miscommunication leads to many unnecessary arguments and hurt feelings. Likewise, ambiguous phrasing in wills can lead to legal challenges and a world of hurt. To help your loved ones, make sure you use specific language in your will.
For instance, if you intend to leave property to a child but want their spouse to have no claim to it in the event of divorce, state this explicitly in your will! You should also account for alternative scenarios, such as beneficiaries refusing an inheritance. Naming alternate beneficiaries will allow your assets to be distributed regardless of the circumstances. Make sure you also specify how your assets should be handled if an heir can’t be located, as this can streamline the probate process.
3. Document your assets.
Making a comprehensive list of assets is one of the key ingredients to a well-crafted will. Assets may include:
- Real estate properties
- Bank accounts
- Investment portfolios
- Business interests
- Personal belongings, including jewelry and art
- Retirement funds and insurance policies
- Intellectual property, such as book royalties or patents
- Digital assets, including cryptocurrency and online businesses
4. Determine the value of your assets.
Determining the value of assets can guarantee fair distribution among your beneficiaries. Consider involving professionals, such as real estate appraisers or financial advisors, to obtain accurate assessments of valuable assets. Certain assets, such as stocks or business holdings, may fluctuate in value, so you should regularly update the will. Additionally, you should account for any debts tied to your assets, such as mortgages or loans. Making debt repayment plans can help prevent financial complications for your loved ones.
5. Appoint an executor.
Choosing the right executor is important. The executor has several key responsibilities, including:
- Filing the will in probate court
- Identifying and inventorying assets
- Settling outstanding debts and taxes
- Distributing assets to beneficiaries
- Managing legal and financial obligations associated with the estate
Make sure you select trustworthy, responsible, and capable. A family member might be your first choice. However, in some cases, a neutral third party, such as a lawyer or financial institution, could be a better option to prevent conflicts or protests. If you choose a professional executor, discuss their fees in advance and make sure they fit within the estate’s budget!
6. Appoint guardians.
For those with minor children or dependents, naming a guardian is critical. This guarantees that, in the event of your passing, someone you trust will care for your children according to your values and wishes.
A separate financial guardian can also help manage your children’s inheritance until they become adults. Consider drafting a letter of intent to accompany your will. This letter will outline your preferences for your children’s upbringing, including educational, religious, or cultural values. While not legally binding, it provides valuable guidance for guardians.
7. Plan for your child or dependent’s care.
Specify how your children’s upbringing and financial needs will be managed. You can set up a trust or appoint a trustee to make sure funds are used for education, healthcare, and general well-being. Additionally, guardians should be financially prepared to take on this responsibility. For example, you may allocate specific funds for activities like college tuition, extracurricular programs, or travel expenses. Your will should also account for unforeseen circumstances and name an alternate guardian to provide care. You should review this periodically, as circumstances for your chosen guardian may change over time.
8. Establish a trust.
A trust within your will can provide long-term financial management for beneficiaries, especially minors or individuals with special needs. Trusts help distribute assets over time rather than in a lump sum, which can benefit young or financially incompetent heirs. Make sure you appoint a responsible trustee so your trust is managed well! Provide clear instructions in your will regarding the trustee’s responsibilities and authority. You may also want to include provisions for replacing a trustee if they can’t fulfill their duties.
9. Plan for taxes.
A well-structured will can reduce tax burdens on your estate and beneficiaries. Other estate tax planning strategies often include:
- Gifting assets during your lifetime
- Making charitable donations
- Setting up irrevocable trusts
Consulting an estate planning attorney or financial advisor can identify strategies that minimize estate taxes and leave more assets behind for your loved ones. Make sure you also consider the implications of federal and state estate tax laws, as they vary widely.
10. Get witness signatures.
For a will to be valid, the testator must be of sound mind and capable of understanding the consequences of their decisions. Understanding legal requirements ensures that your will is legally binding. Depending on state law, you’ll need 1 or 2 witnesses to watch you sign your will and then sign it themselves. Make sure you don’t forget this step, as this could render your will invalid and even get it thrown out of probate court later on down the line!
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Originally published January 31, 2025
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