Creating a Will is an important opportunity to put your wishes in writing.
But what exactly should you include in a Will?
A good Will should clearly communicate what you want to happen to your property and identify the people responsible for carrying out your instructions.
The exact wording and provisions you need will depend on your circumstances and the law applicable to you. However, there are several important areas to consider when preparing your Last Will and Testament.
1. Your identifying information
Your Will should clearly identify you as the person making the Will.
Use your correct legal name and carefully review all identifying information before signing.
This helps avoid confusion about whose Will the document is.
2. Your beneficiaries
One of the most important parts of a Will is identifying the people or organizations you want to benefit from your estate.
Beneficiaries might include:
- Your spouse
- Your children
- Other family members
- Friends
- Charities
- Other organizations
Think carefully about who you want to receive your property.
It is also important to consider what should happen if one of your beneficiaries dies before you.
3. Specific gifts
You may want to leave particular property to particular people.
For example, you might want to leave:
- A family heirloom
- Jewelry
- A vehicle
- A collection
- A particular sum of money
- Other personal property
If you are making specific gifts, identify them as clearly as possible.
Keep in mind that circumstances can change. A person may sell or replace property after making a Will, so reviewing your Will periodically is a good practice.
4. The remainder of your estate
Not everything you own will necessarily be covered by a specific gift.
For that reason, your Will should address what happens to the remainder of your estate.
This is often called the residue or residuary estate.
For example, after specific gifts and applicable expenses have been dealt with, you may want everything remaining to pass to your spouse or children.
Having a clear plan for the remainder can help avoid uncertainty.
5. Your executor
Your Will should identify the person you want to handle the administration of your estate.
This person is commonly called an executor, although some states use the term personal representative.
The executor may have to:
- Locate and secure estate property
- Deal with financial institutions
- Pay valid debts and expenses
- Handle estate administration
- Work with the probate court where necessary
- Distribute property according to the Will
Choose someone responsible and trustworthy.
It is also worth considering an alternate person in case your first choice cannot serve.
6. Guardians for minor children
If you have children who are minors, consider whether your Will should include your wishes concerning their care.
A Will can be an important part of planning for minor children, including expressing your preferred guardian where state law allows.
This is a major decision, so consider the people you trust and whether they are prepared to accept the responsibility.
7. Instructions for children or younger beneficiaries
If you plan to leave property to children or other young beneficiaries, consider whether simply giving them an inheritance outright is appropriate.
Depending on your circumstances, there may be other estate planning tools that could be considered.
A Will alone may not address every situation involving long-term management of assets for a child.
If this is an important concern, professional legal advice may be appropriate.
8. Alternate beneficiaries
It is wise to think about what happens if your first-choice beneficiary dies before you.
For example, if you leave your estate to one person and that person dies before you, your Will should provide clear instructions about what should happen next where appropriate.
Including alternate beneficiaries can help provide a backup plan.
9. Your wishes about debts and expenses
Estate administration can involve debts, expenses, taxes, and other obligations.
Your Will may contain provisions addressing these matters, although applicable law will also determine how debts and expenses are handled.
Your executor will generally have responsibilities involving the administration of the estate before assets are distributed.
10. Your signature and execution
Even a carefully written Will can create problems if it is not properly executed.
Your Will needs to be signed according to the legal requirements applicable to you.
This may involve witnesses and, depending on the state and circumstances, notarization or other formalities.
Always follow the execution instructions that apply to your Will.
What does a Will not necessarily control?
It is important to understand that a Will does not necessarily determine what happens to every asset you own.
Some assets may pass through beneficiary designations or ownership arrangements outside the Will.
Examples can include certain:
- Life insurance policies
- Retirement accounts
- Jointly owned property
- Payable-on-death accounts
- Transfer-on-death arrangements
Because these arrangements can operate separately from a Will, review your beneficiary designations as part of your overall estate planning.
How often should you update your Will?
There is no single schedule that applies to everyone.
However, you should consider reviewing your Will when an important life event occurs.
For example:
- Marriage
- Divorce
- Birth or adoption of a child
- Death of a beneficiary
- Death of an executor
- Major changes in your finances
- Buying or selling significant property
- Moving to another state
If something important changes, review your Will to make sure it still reflects your wishes.
Using a Will Kit
A Will Kit can make it easier to work through the information that needs to be considered when preparing a Will.
A typical kit may include:
- Last Will and Testament Forms
- Step-by-step instructions
- An example Will for reference
A DIY Will Kit can be particularly useful for people who want to organize their wishes and prepare their own Will.
Final thoughts
A well-prepared Will should do more than simply say who gets your property.
It should provide clear instructions about your beneficiaries, executor, specific gifts, remaining estate, and other important matters relevant to your circumstances.
Take your time, read your Will Forms carefully, and make sure the document is properly executed.
And remember that a Will is only one part of an overall estate plan. Beneficiary designations and other arrangements may also affect what happens to your assets.
Important: This article provides general information and is not legal advice. Estate planning and Will requirements vary by state. If you have complicated circumstances or questions about your individual estate plan, consult a qualified attorney.
Source: United States Wills