estate planning, financial planning,

Why You Need a Will (and You Need One Today)

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

By Sarah Duey, JD, CFTA, CAP®, Vice President, Trust Services

Who wants to spend an afternoon thinking about their mortality? No one, which is why more than half of Americans don’t even have a will.

The foundation of your estate plan is a Last Will and Testament. Without a will, you are leaving the disposition of your assets and the guardianship of your minor children to a court. In my state, Nebraska, for example, if I were married at the time of my death and died without a will, my spouse does not receive all of my assets if I have children.

Even from this one example, you can see that creating and structuring a will is complex. Let’s look at a few of the basics to help you start this important conversation.

What is a will?

A will is a legal document that directs what happens to your stuff, directs who will handle your stuff (your executor) and directs what happens to your children by naming a guardian to take care of them.

Where can I get a will?

Check to see if your employer offers any kind of legal benefits. Some employers offer their stakeholders help in getting a will created. There are also online will-creation services. However, the big pitfall of the “DIY” will is that while a lawyer checks that the will complies with legal standards no one is verifying its correctness.

Hire an estate planning attorney

For most people creating a will, hiring an estate planning attorney makes the most sense. The attorney verifies accuracy and can work with your financial advisor to confirm your will coordinates with your financial accounts, your savings plan and legacy wishes. Plus, the attorney can point out things that you may have never thought of – there are a lot of angles here, and a lot you can do to make sure your loved ones are well cared for.

It’s important to find an attorney who specializes in estate planning. State laws are constantly changing and you want to work with someone who is in that area of law on a daily basis so you can ensure you have a plan that complies. Ask friends and co-workers if they know a good estate planning attorney if you don’t know anyone. You can also look up your local estate planning council or bar association to see if they can give you some names to help with creating a will.

Next, you’ll want to connect with several estate planning attorneys and determine the best fit. Ask about the process and what fees you will likely face and ask about what you need to do to prepare for your next meeting. You’ll likely want someone who is younger than you so he or she can continue to help you with your planning needs throughout your lifetime.

Your estate planning attorney might have a questionnaire to complete prior to your first visit. There are important questions that the attorney will want to ask and get answers to. Usually, an hour will set the attorney up for success in getting what he or she needs to draft a plan that accurately outlines your wishes and correctly complies with your state’s laws.

Click here to download our complimentary resource: Estate Planning Simplified

What About a Trust?

Of course, creating a will is absolutely necessary regardless of whether you add a trust to your list of estate planning documents. But a common question is “do I need a trust?” Again, not surprisingly, the answer is, “it depends.”

A trust can be an important step toward fulfilling your family’s financial goals. There are specific advantages to having a trust: continuity of asset management, privacy and tax savings are among a few.

What is a Revocable Living Trust?

A living or revocable trust provides for the organization and management of your assets during your lifetime, including any periods of disability. In addition, having your assets in a trust during your lifetime will prevent your estate from having to pass through a court-supervised process if you only have a will (or no will) at the time of your death.

Creating a trust also provides an incredible amount of flexibility after your death. For example, you could have your trust divide up your assets after you are no longer living and create new trusts for your children to protect them against creditors and divorce.

The Drawbacks to Trusts

Trusts do have a downside. Compared with wills, creating trusts comes with additional work of funding the trust and making sure all assets are in the trust. Your attorney can discuss the options for creating and funding a trust with you. Regardless, you’ll still need a simple will, as a back-up, even if you do some trust planning.

Prioritize Your Estate Plan

Whether you decide to create a trust, prioritize getting your will and powers of attorney completed. Creating a will and other estate planning documents isn’t a Herculean task. The bonus of getting it done is that you’ll sleep better at night knowing you have a plan to take care of loved ones when the day comes and you are no longer able to.

Your financial advisor can help you begin this conversation in a way that makes sense for you and your family. Knowing not just your holdings, but your style and values will help you shape a legacy that expresses your care for the people and causes you love. Let’s talk!

Make an appointment with your advisor

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Jamie Hopkins on “Stacking Benjamins”

We’re going to dive into everything mortgages 101 today, like PMI, the negotiability of fees, and the lie that everyone quoting rates is telling. On today’s show we welcome the guy who’s teaching us everything millennials need to know about mortgages, Jeff VanNote.

How Do I Know Which Investment Strategy Makes the Most Sense for Me?

Our disciplined discovery process is key to understanding the right investment strategy for your specific situation. Once we have the answers from our clients, we begin to think about the second category of factors which involve the overall health of the economy.

Tax Cuts and Jobs Act Changed Things More Than You Realize

The Tax Cuts and Jobs Act made a lot of changes. It was the single largest tax reform bill in nearly 30 years. However, the impact of the TCJA might be a lot broader than most realize. Almost every small business owner in the country is impacted by a new tax deduction called 199A.

Medicare Time – Now What? Things to Know as You Start Out

By Mark Petersen, Vice President, Affluent Wealth Planning You’re turning 65 this year and Medicare is on your mind. Medicare is a subset of Social Security and run by the Social Security Administration. In my experience, it may be almost as complicated as the Internal Revenue Code! With th …
1 2 3 18 19 20 21 22 67 68 69
estate planning, financial planning,

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation