9 Things to Know about Writing a Will

Writing a will isn’t exactly the most pleasant endeavor. Perhaps that’s why a 2022 Caring.com survey revealed that over 67% percent of Americans don’t have one! However, that doesn’t change the fact that wills are an essential part of estate planning. Think of them as peace of mind in written form. They’re a great way to save your grieving family from a huge headache. “When there is no will, there is a much better chance that there will be fighting within the family, as no one knows what your wishes were,” states Joe Fresard, an attorney in Mount Clemens, Michigan.

As you can see, wills are incredibly important! If you’re an older adult who hasn’t drafted a will, it’s time that you sit down and draft one so your assets are distributed according to your wishes. But before you grab a pen and some paper, here are 9 essential things you should know.

Will Preparation Checklist

Before you even begin writing your will, you should first make sure that you meet the following qualifications. You should have a will if:

• You’re over the age of 18.
• You’re a homeowner or own other property.
• You’ve had a career or are currently working.
• You have savings, investments, or other assets.
• You have children or other dependents.

If any of the above points apply to you, then you should write a will! Dying without a will, or dying intestate, means that your assets probably won’t end up where you want them to. While estate law varies from state to state, most of the time, the estate will transfer to the deceased person’s spouse or, in cases where the decedent is single, to their children or other dependents. Additionally, the succession of assets may be delayed and subject to review in a probate court. So, if you want to ensure that your assets are distributed promptly and according to your wishes, you need a will!

Now, here’s what you need to know about writing one.

1. Be specific about your wishes.

When you write your will, it’s important to be as clear and concise as possible. Don’t leave any room for interpretation or ambiguity! Use clear language and the names of all your beneficiaries, as well as their relationship to you. Additionally, if you want to bequeath a certain gift to an heir, make sure that you directly name that item. Some examples of gifts include:

• Real estate
• Jewelry
• Cars or other moveable possessions
• Artwork
• A business
• Money held in a specific bank account
• Clothing
• Electronics

Be mindful that some items, such as property or family heirlooms, cannot be split (according to Free Will). Also, many stock accounts will NOT automatically be transferred to a spouse. In other to get the stock, the living spouse or children will often have to transfer it into their name via paperwork and a medallion signature guarantee. To save your spouse or beneficiaries the hassle of transferring your stock into their name, consider adding your spouse’s name onto the stock, retitling your account to a TOD (Transfer on Death), OR stating in clear language that the stock should be transferred to them upon your death.

2. Understand the value of your assets.

In addition to using clear, specific language, it’s also important to understand the value of your assets. Make a list of all the assets you own, including property, financial assets, pets, family heirlooms, and personal items. Assets that you should list in your will include:

• Bank Accounts
  • Checking accounts
  • Monkey market accounts
  • Savings accounts
  • CD (Certificate of Deposit) accounts
• Real Estate
  • Your primary home or residence
  • Vacation home or rental
  • Land
  • Commercial real estate
• Investment Assets
  • Stocks
  • Bonds
  • Cryptocurrencies
  • Mutual funds
• Personal Items
  • Family heirlooms
  • Furniture
  • Vehicles (cars, boats, RVs)
  • Jewelry or antiques
  • Artwork
  • Collectible items

3. Name an executor.

Appointing an executor is one of the most important steps in writing your will! Put simply, an executor is the person who will honor and carry out your final wishes. They’re in charge of tying up all the loose ends, including distributing your assets to your beneficiaries and paying off debates from your estate. Make sure that you choose someone who’s both responsible and trustworthy. While many people appoint a spouse or adult child, you can also name an attorney, bank, trust company, or even a CPA as your executor. Whoever you choose, make sure they’re up for the task and understand all the responsibilities that come with being an executor!

4. Choose guardians for minor children or dependents.

Do you have children under the age of 18? Or are you raising minor grandchildren or other dependents? If the answer to any of those questions is yes, then make sure you name a guardian for them in your will. Being a guardian is a huge responsibility, so make sure you choose someone who’s up for the task. Provide instructions about the care, upbringing, and financial support of minors under guardianship. Also, consider setting aside money for the appointed guardian to help with the financial burden of adding another person to their household. Following these steps will ensure that your child or dependents are taken care of properly after your passing.

5. Consider also drafting a testamentary trust.

A testamentary trust is established within a will and goes into effect after your passing. To create one, you just need to write the provisions in your will. Not only does it allow the assets in your estate to be distributed according to your wishes, but this will allow for the distribution of any life insurance policies, as well. However, be mindful that testamentary trusts are subject to taxation (according to Western Southern). Make sure to speak to a probate or elder law attorney to see if establishing a testamentary trust is the right move for you and your estate!

6. Look into tax implications and other estate planning strategies

As mentioned in the previous point, certain tax implications come along with wills. In fact, different assets have different tax rules. For example, some assets that can be transferred via beneficiary designation, like IRAS, have specific tax rules that you should be aware of. If you’re unfamiliar with tax rules in your state, then contact an accountant or CPA for further information. Make sure that you’re not in danger of leaving your beneficiaries with crippling tax debt!

7. Sign your will in front of witnesses.

While you should sign your will yourself, you also need witnesses! As the testator, you have to meet certain requirements when signing your will. For example, you must be an adult of sound mind and understand the consequences of your will. The other signatures verify the integrity of your signature and render your will valid. Make sure that you follow the appropriate steps to validate your will to ensure that your assets are distributed properly and your wishes are followed!

8. Include digital assets!

We live in a digital age, and your will should reflect that! Make sure to include digital assets, such as online banking or investment accounts, in your will! However, those aren’t the only digital accounts that should be listed among your assets. Other digital assets include:

• Online banking or investment accounts
• Blogs or websites
• Social media accounts
• Email or online storage accounts (such as Google Drive or OneDrive)
• Digital documents
• Music or movie files
• PayPal or Venmo accounts
• Shopping accounts (such as Amazon Prime)
• Subscription services
• Website domains

9. Review and update your will periodically.

Life changes constantly. That’s why estate planning attorneys recommend that you update your will at least every three to five years or when there’s a major life event. Some of the major life events that may constitute a will change include:

• Marital changes: Getting married or divorced can significantly change your financial and familial circumstances, impacting who you want to inherit your assets.
• Birth or adoption of children: The arrival of children or adopting a child may necessitate updating your will to include provisions for their care and inheritance.
• Death of a beneficiary: Sadly, it happens. You might outlive one or more of your beneficiaries, which may require you to amend your will.
• Change in financial situation: Significant changes in your financial status, such as inheriting a large sum of money, acquiring substantial assets, or experiencing financial difficulties, may require adjustments to your will.
• Relocation: Moving to a different state or country can trigger the need to update your will to comply with local laws and ensure its validity.

Takeaway

To summarize, writing a will is a critical part of estate planning. To ensure the validity of your will, make sure that you use clear, specific language, have witnesses, and follow your state’s laws regarding wills. Consider contacting an estate planning or elder law attorney to look over your will or assist you with drafting it. And remember—while writing a will may seem unpleasant at first, the peace of mind you’ll have after will be worth it!