We’re kicking off our estate planning series with a foundational topic: wills. Creating a will is more than a legal formality; it’s about ensuring your loved ones are cared for and your wishes are honored after you’re gone.

Why a Will Matters

Imagine your family facing the grief of your passing, compounded by the confusion and potential conflict of sorting out your estate without clear guidance. A will provides that clarity and peace of mind, ensuring your assets are distributed according to your wishes, rather than leaving those decisions up to the state.

Crafting Your Will: Important Considerations

Choosing Your Executor Think of your executor as the project manager of your estate. This should be someone you trust implicitly, as they will manage your assets, pay debts, and distribute your belongings according to your will.

Naming Beneficiaries This is where you decide who gets what. Whether it’s your children, siblings, friends, or charitable organizations, you have the power to direct your assets to those who matter most to you. Be specific to avoid any misunderstandings.

Appointing Guardians for Minor Children One of the most critical decisions if you have young children is appointing a guardian. This ensures that your children are cared for by someone you trust, in a manner that aligns with your values and wishes.

Specific Bequests and Residual Estate Detail any specific items or amounts of money you want to give to individuals or organizations. After these bequests, the remainder of your estate (the residual) will be distributed as you see fit.

Ensuring Your Will is Legally Binding

A valid will requires:

• A Written Document: While some states accept oral wills, a written document is universally recognized.
• Signatures: Your will must be signed by you and witnessed by at least two individuals who aren’t beneficiaries.
• Mental Competence: You must understand what you’re signing and the implications of your decisions.

The Probate Process

When a will is executed, it must go through probate—a legal process where the will is validated, and the executor is given the authority to distribute the estate. Probate ensures debts are paid, and assets are distributed according to the will. It’s a public process, meaning your will becomes part of the public record.

Contesting a Will

Sometimes, despite careful planning, a will can be contested. This usually happens when an interested party believes the will is invalid due to reasons like undue influence, lack of mental capacity, or improper execution. Contesting a will can be a lengthy and costly process, often leading to family disputes. To minimize the chances of a contest, ensure your will is clear, updated, and legally sound. Discussing your plans with family members can also help set expectations and reduce surprises.

Reviewing and Updating Your Will

Life changes, and so should your will. Major life events like marriage, divorce, the birth of a child, or the passing of a beneficiary are all triggers to review and update your will. Regular updates ensure your will always reflects your current wishes.

Coming Up Next Week:

Maybe you want to avoid probate or ensure your business stays out of the public record. Perhaps you have special instructions, like paying out inheritances over time. You might need a trust. That’s the subject of next week’s edition. Stay tuned!

Warmly,

Jeff Perry

Partner, Quest Commonwealth

Co-Host of “Safe Money Mindset” on WXYZ-TV ABC Detroit

Author of “Safe Money Mindset” – Available on Amazon or discounted HERE

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