Every estate planning lawyer will draft a will as an essential part of your estate plan. But less than half of Americans have a will, or have thought about how they would like to have their property handled at the time of their passing, according to a recent article titled “How to make a will and why you need one while you’re still alive” from Today.
Why do you need a will?
A will is a legal document establishing your wishes about the distribution of assets after your death. This includes money, real estate, investments and even the care of minor children. If there is no will, the state law will control who receives assets, called “the laws of intestacy.” In other words, a court will make all of your decisions for you. Even though your estate may need to go through probate court, a will saves an enormous amount of time and expense in estate administration.
If you have minor children your will is where you nominate their guardians. If there is a single reason why a young couple with children should have an estate plan this is it! Think about it all of the time and energy you put into your kids - both mental and physical. You think about their futures, you provide them with a home, you choose their schools, you invest for their future - they are a huge part of your purpose. Well, don't stop short with all of that work and care for them by not planning for what happens to them in the unfortunate event you are gone while they are still minors. Nobody wants to think about that prospect, but we all know it happens. Drafting a will in place now protects them. Without a will nominating guardians, your choice is left to a court to decide who will take care of your kids. That's certainly not what you want. The choice should be yours.
How does a will differ from a living will?
The similarities in name make this an easily confused concept, but they serve very different purposes. A living will is a document where you express your wishes for treatment under certain medical circumstances, if you are unable to make those decisions for yourself. The laws vary by state, which is why you need an estate planning attorney in your area to create the living will for you.
The living will is also different from a Health Care Power of Attorney. General medical decisions not related to end-of-life care are usually covered in the Health Care POA. This gives another person the ability to be involved in your health care, discuss your situation with doctors and speak with your health insurance company.
The living will provides for specific instructions for medical care during your lifetime. The will, also known as a last will and testament, allows you to chose who will be in charge of the administration of your estate—your executor—and who will receive assets upon your death.
Before meeting with an estate planning attorney, who is the one who should draft a will for you, consider the who, what and how:
What assets do you own? A complete inventory of your assets, including account names and numbers, will be helpful in distributing assets.
Creating an estate plan offers an opportunity to account for and consolidate your assets. It’s also the time to check on beneficiary designations. They always override what the will says. You want to be sure assets don’t go to the wrong person because you forgot to update your life insurance policy, for instance.
Finally, you can and should update your will every three to five years and every time there is a major life event, including births, deaths, marriages, divorces, the sale of a business or other large life events. You may not need to redo each and every document. However, wills and estate planning documents are not designed to be done once and never revisited. Life changes and so do tax laws. Failing to revise a will could mean missed opportunities.
If you live in the Madison, WI area give us a call to discuss your estate planning needs. It's quick, painless, and might just give you a sense of relief knowing you're taking a step to care for your family.
Reference: Today (Aug. 17, 2022) “How to make a will and why you need one while you’re still alive”