August is National Make a Will Month, and while the month may be drawing to an end there’s still plenty of time to consider this topic! While this article isn’t legal advice and shouldn’t be treated as such, it can be a starting point to familiarize yourself with the terms and documents you’ll be seeing in the will-making and estate planning process. Specifically, in this article, we’ll go over common questions, definitions, and practical ideas for what to include in a will, even if you’re starting from scratch.
Who needs a will?
The short answer? Just about everyone!
If you’re over 18, or if you have a career, you should have a will.
Whether you’re employed or self-employed, a parent or childfree-by-choice, wealthy or low-income, a will is important to make sure your wishes are heard and respected when you are no longer here to explain them.
But what, exactly, is a will?
Miriam-Webster defines a will, also referred to as a “last will and testament”, as “a legal declaration of a person's wishes regarding the disposal of his or her property or estate after death, especially:a written instrument legally executed by which a person makes disposition of his or her estate to take effect after death”
In practice, a will is going to first and foremost be a document, usually typed but sometimes handwritten, that contains and explains your wishes for what will happen to your things after you pass away. However, It’s important to note that in this context, “estate” doesn’t just translate to “home” or “real estate.”
For will writing purposes, the “estate” includes any assets, such as:
- Personal property, like vehicles, furniture, jewelry, etc.
- Financial assets, like bank accounts and investment accounts.
- Real property, like real estate or land.
The estate also includes any liabilities, such as debt from a mortgage, loan, or credit card balance.
Your will is also where you can plan for the care of any children, pets, or others in your care who will need care after your passing by nominating (or naming) guardians.
If you have children, planning for their care might mean setting aside time to have a serious conversation with any relatives, godparents, or trusted friends ahead of time to confirm they’d be comfortable being taking responsibility for your children in the event of your passing.
If you have pets, you should include them in these conversations. Relatives who may happily take in children may not have the ability to care for pets, or have pets of their own they must consider. Sadly, around 10% of animals surrendered to shelters are surrendered because their owners passed away3, so it’s important not to overlook this aspect of planning to ensure your furry friends safety if you should pass first.
So, how do you make a will?
While legal requirements vary by state, as a general rule you should include the following information in writing, either by hand or in a word document:
- Your Personal Information
Don’t overlook the basics! You should be sure your will includes your full legal name, including middle name if you have one and any aliases or names you’ve used formerly such as a maiden name; Your date of birth; your address; the names of your spouse and/or children, if you have them;
- Statement of Intention
Your will should include language that make it clear that the document is, in fact, your will. A commonly used and accepted way of phrasing this could be “This is my last will and testament.”
- Assets and Beneficiaries
Your assets, as defined above, should be listed, as well as the person you’re leaving them to. The person who receives the asset is referred to as the ‘beneficiary.’ A memory hook for this definition could be ‘the beneficiary is the one who benefits from receiving the asset!’
This section can be as simple as declaring that you’re leaving everything to your spouse, or as detailed as listing which financial accounts go to which beneficiaries. Don’t be afraid to be as detailed as you need to be!
- Guardianship
If you have minor children, pets, or other dependents such as elderly parents or disabled adults who rely on you, this is where you can name who you’d like to care for them after your passing.
- Signatures and Witnesses
Depending on your state and whether the will is hand-written or machine typed, there may be different requirements, but you’ll likely need to sign your will in the presence of two witnesses who are not listed as beneficiaries. The witnesses will likely also sign the will.
Are there resources to help you create a will?
Yes! Many local libraries have periodic workshops with local professionals who are happy to assist you in creating a will. There are also templates on the internet for free that can give you an idea how to format your will.
While having a lawyer create your will isn’t legally necessary, they can also assist you with gathering documents and drafting the will itself.
In addition, consider talking to a CERTIFIED FINANCIAL PLANNER such as at AZTEC Financial Group. Your CERTIFIED FINANCIAL PLANNER will have access to a wealth of information and can help you with any trusts, beneficiaries, financial accounts, retirement funds, and so much more.
Nobody enjoys thinking about estate and end-of-life planning, but it doesn’t have to be overwhelming or stressful. In fact, this step is a wonderful tool that can bring comfort in the knowledge that your estate is distributed as you wish, your loved ones are cared for, and that your legacy continues to inspire even after you’re gone.