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Why Write A Will?

The first and most basic way of leaving a legacy is by establishing a last testament and will, ensuring that the assets that you leave behind are divided in the way that you intend. Writing a will can seem like a daunting task, and one which most people are not eager to complete given the subject matter.

But the creation of a will is a simple way to save your beneficiaries significant time and money! And once it’s completed, you rarely if ever need to change it. In other words, this means very little sacrifice in exchange for a huge benefit to your loved ones!

Here we will review the reasons for writing a will, the necessary points to be included, the ways in which this can be done, and the necessity or avoidance of probate.

The last will and testament, commonly known as simply the will, is the foundational legal document that outlines the detail of how assets are to be distributed after one’s death. This, of itself, lifts a tremendous load from the mind of the beneficiaries, helping to avoid undesirable conflict and confusion either among the beneficiaries alone or into the legal realm.

The Basic Points of a Will

A will proceeds to do the following:

Appoint one or more executors.

• Be careful when choosing to list more than one executor, as this can be a source of conflict if there is disagreement in the interpretation of your intentions.
• This executor will oversee and execute the intentions of the will. This includes such things as valuing the assets, paying debts, paying taxes, and distributing the assets as intended by the testator (deceased).

List the beneficiaries.

• Include their full names and relations.
• If minors are included, then a guardian must also be named.
• Besides primary beneficiaries, one also may wish to list contingent beneficiaries. These will apply only if the primary beneficiary is not alive at the time of one’s passing.

Describe your intention for asset distribution among them.

• Each asset should be listed in detail, whether it be a cash account, investment account, real estate property, or other valuable item.

The First and Last Step to Writing a Will

Resolving to write a will is the first step which can be difficult to make; after all, people don’t generally gravitate toward subjects as death and the details of events with which they themselves are not going to be involved. Once someone turns 18 years old, however, there is no “right” age to write a will. The earlier, the better, even if the assets don’t yet amount to much. Taking the load of the decisions off of loved ones may be more valuable than the assets themselves if something should happen in those early years.

If one’s intentions are straightforward, a will can be completed by using a template. Trying to write a will from scratch is not generally a good idea, as certain legal language needs to be included to be legally binding and to avoid confusion.

For some, the estate might be more complex, such as when it includes a business or if the value of assets surpasses the threshold for estate taxes on the federal or state level. In 2024, the federal threshold in the US is $13.61 million for individuals, and double that amount for married couples. For complex estates like this, having a professional attorney write the will helps give peace of mind that the language and content has been approved by a legal expert.

Many who are between the ages of 18 and 50 do not have such complexities with their estate, and are well below the average life expectancy, so simple wills often suffice for their needs. After passing age 50, however, it’s generally a good idea to have the will written professionally by an attorney. Having the second pair of eyes on the material, and a professional opinion, can help to avoid unnecessary contention or confusion when that day comes.

Once the language of the will is completed, it is validated by the following:

• The testator (person who makes the will) is at least 18 years old and of sound mind.
• The will is signed by two witnesses, age 18 or older, who are not the beneficiaries.
• While a notary is not required in every state, it’s generally a good practice to include one during the signings.

Should I Be Worried About Probate?

For most wills, the process of probate will likely apply. This refers to the court’s involvement with validating the will, appointing the executor or administrator (when no will exists), and overseeing the distribution of assets and settlement of debts and outstanding expenses such as funeral, medical or tax costs. Probate can be a costly process, sometimes incurring around 3%-8% of the value of the total estate.

While several factors affect whether the probate process is necessary (such as complexity of the will, the inclusion of real estate, size of the estate, or whether it is contested), a few simple things can be done to avoid probate:

• Joint ownership – If one feels comfortable designating an account or asset as joint ownership with their intended beneficiary, this will allow the asset to simply pass to the surviving owner after the passing of the other.
• Payable on Death (POD) or Transfer on Death (TOD) – Adding a POD to a bank asset or a TOD to an investment account can allow that account to avoid probate.
• Naming beneficiaries – This can be done with retirement accounts such as 401(k) and IRA accounts, as well as bank accounts and insurance policies.
• Living Trust – Creating a living trust has a cost upfront, because it must be done by an attorney, but the benefit can be tremendous. Anything held in the name of the trust avoids probate.

Conclusion

Creating a lasting will and testament gives peace of mind to the testator and a much smoother process to the beneficiaries. Discussing one’s intentions with the beneficiaries, letting them know where to find the physical and electronic copies of the will, and explaining the reasoning behind one’s decisions for asset distribution, will go far to ensure everyone is on the same page and that intentions are understood. Avoiding probate, if possible, will simply take one additional load off the surviving loved ones and allow for a smooth transfer of assets. This investment in future generations is the first and most material way in which one’s legacy lives on through the years.