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  • Assigning Beneficiaries to Financial Accounts

    Assigning Beneficiaries to Financial Accounts When beginning to work on your estate plan, one decision to prioritize involves distributing your estate among your chosen beneficiaries. The idea of your loved ones dealing with the probate process after your death may be concerning. You can look for other options to avoid this process the best you can. One way to allow you around probate and avoid the hassle and expense of this process is by directly assigning beneficiaries to your financial accounts. Sometimes referred to as “beneficiary designation,” this option simply refers to designating specific beneficiaries to your different financial accounts instead of just listing these instructions in your Last Will and Testament.  Advantages of Beneficiary Designation The primary advantage of adding beneficiary designations is it streamlines the distribution process after you die. It ensures your loved ones are taken care of without additional hassles and stress.  Another advantage of including direct designation of beneficiaries is your loved ones may avoid the complication and expense of probate. In most cases, assets and property not included in a trust or already designated to a beneficiary must go through the probate process, even if the estate owner has a Last Will and Testament.  The Beneficiary Designation Process The best way to add beneficiaries to your financial accounts is to contact the different institutions directly and find out their specific procedures. From your checking or savings accounts, to IRAs and other retirement accounts, designating beneficiaries generally involves filling out a form from the bank or financial institution.  You should be able to change or revoke the beneficiary designation as long as you are of sound mind when making the decision. You may have to fill out additional forms with your bank or financial institution.  Covering All Bases You don’t need an attorney to add beneficiaries to your financial accounts. However, depending on the worth of your assets, you may still consider consulting an estate attorney about any potential tax issues.  Beneficiary designation does not necessarily take the place of a will. You still need this document to list your final instructions and give any other details regarding the rest of your estate. 

  • Choosing Beneficiaries

    Choosing Beneficiaries When you decide to put an estate plan together, you must begin with a Last Will and Testament. This process requires careful thought and attention. One crucial decision to make while putting together your will is selecting your beneficiaries.  Beneficiary Definition Within a Last Will and Testament, a beneficiary is any party who receives a portion of the testator’s estate. A beneficiary can be a person or an organization. In your role of creating the will, you can choose to distribute your estate however and to whomever you choose. The only condition is the beneficiary you choose must still be alive. Clearly Name Your Beneficiaries Choosing your desired beneficiaries is the first part of your will process. You must include this information in your Last Will and Testament. Inputting the information incorrectly can lead to added complications and disputes during probate.  You must use the full legal name of each intended beneficiary (person) with no nicknames or abbreviations. You should also include suffixes (Sr, Jr, roman numerals). If there are two beneficiaries with similar names, you may choose to add distinguishing information to avoid potential confusion.  You should also be clear with the name of any organization as a beneficiary. You may need to include the organization’s location and a point of contact. Since you will not be present to clear up any misunderstandings, a good rule-of-thumb is that too much information is better than not enough.  Your Spouse as a Beneficiary If you are married, you may choose your spouse as your primary and sole beneficiary in your will. This is not required by law in any way. You should be aware, however, your spouse does have some legal claims to your estate already. The law states that your spouse is the automatic beneficiary of any 401K and pension accounts.  Common-Law Versus Community Property Understanding the law, especially in relation to your estate and designated beneficiaries, is necessary. Otherwise, you could end up with a legally invalid will.  The following states are known as “community property states,” which means all assets gained, earned, or bought while married are considered the property of both spouses: Arizona California Idaho Louisiana Nevada New Mexico Texas Washington Wisconsin The rest of the US states are known as “common law” states. This means the assets gained while married are considered the property of that specific spouse. In other words, unless otherwise noted in documentation, the property you purchased while married is only considered to be yours.  Minor Children as Beneficiaries You are legally allowed to leave assets to your children even if they are considered minors. However, a minor cannot directly receive the estate until they are an adult. The assets or property will be managed by the child’s legal guardian. You may also choose to create a trust for your child’s inheritance. The appointed trustee would manage the assets until the minor is a legal adult.  Organizations as Beneficiaries You may also choose to distribute part of your estate to an organization (i.e. nonprofit, church, etc). Depending on the gift’s dollar amount, you may need to check with an estate attorney regarding any potential tax requirements. You may also want to leave additional instructions to your executor of how to carry out your wishes when distributing these gifts.  Alternate Beneficiaries It may seem a bit cold to choose alternates for your beneficiaries, but this is a responsible move to ensure your estate is handled correctly in any situation. You may decide to make your spouse the sole beneficiary of your estate, but what happens if they die before you? What if you both die at the same time? Even your Last Will and Testament may need a back-up plan.  No Beneficiaries Named If you either opt-out of choosing any beneficiaries or you don’t create a will, the probate court will step in and decide what to do with your estate. Generally, the closest relatives receive most of your assets and property.  If you don’t want to add more complications for your loved ones after you die, you should take the time to create a Last Will and Testament and choose beneficiaries for your estate.  

  • Creating a Will

    Creating a Will A 2017 study revealed almost 50% of Americans don’t have a Last Will and Testament. Thousands of families could be left unprepared with the stress of probate when their loved ones pass away due to the lack of an estate plan. Even if you believe your estate isn’t big enough to warrant creating a will, this document is still quite necessary for you and your loved ones. Without a legally valid will, any property or assets that you own must be distributed by the probate court. This can be a lengthy process and result in unnecessary stress on your loved ones during an already troubling time.  Benefits of a Will The primary benefit of having a legally valid will is to put you in control over what happens to your estate after you die. It allows you to be sure your final wishes and instructions will be rightfully carried out.   While you cannot completely avoid the probate process in certain situations, creating a will allows your family to be cared for without having to wait for the court to make decisions. A clear and legal Last Will and Testament speeds up the process so your beneficiaries receive their portion of the estate without lengthy complications.  Do-It-Yourself The procedure for creating your own will begins with a DIY kit (physical or software) that could include a formatted template, health care designations, document information such as the power of attorney, and instructions and information for your family through workbooks. You can also go through a website where you can customize the document to your specifications.  Creating a Will Online You can put together a legally binding Last Will and Testament through an online document preparation website. The instructions are generally easy to follow, and, for the most part, you just fill in the blanks and choose the options that fit your situation.  One upside of creating your own will is the ability to work at your own pace from your own home. You can also make changes to the document before any final signatures. You remain in control over your estate and any final wishes and instructions.  Parts of a Will As you begin setting up your Last Will and Testament, you must make decisions regarding the following: Your executor Your beneficiaries Your guardian(s) (if your children are still minors) Your final instructions The executor is the person responsible for carrying out instructions in the will and working with the probate court to ensure everything remains legal. As this person will have access to sensitive financial information, the executor should be someone trustworthy and responsible.  Your beneficiaries are the people or organizations who will receive portions of your estate. As the testator, you can select any person, business, or organization as your beneficiary. You can also decide how you want to split your estate and who will receive what portion.  If your children are still minors at the time of creating your will, you should select a legal guardian for them, even if you don’t think it will be necessary. Also, keep in mind whoever you choose as the legal guardian will also have access and control over your child’s portion of your estate until they are of legal age to claim it. Signatures and Witnesses Your Last Will and Testament is not considered legally binding until you and your witnesses sign the document. You are required to have two witnesses verify you are signing the will and are fully aware of your actions.  You can also include a Self-Proving Affidavit to attest to the validity of all signatures in the will. This document will save time and stress during the probate process.  A Few Considerations As you begin this part of the estate planning process, there are a few things to keep in mind: The document preparation business is not a law firm and cannot give you legal advice. You can always take your DIY will to an attorney for a second opinion. If you own multiple properties or have substantial assets, you may want to consider working with an attorney to ensure that you are complying with the law in regard to your will and any taxes. You are responsible for ensuring your Last Will and Testament is legally valid. There are some regulations that must be met, regardless of the state of residence.

  • Estate Planning with a Living Trust

    Estate Planning with a Living Trust When considering a strategy for your estate when you have passed away, it is important to have a clear estate plan. This includes an initial Last Will and Testament, but you may want an added layer of protection for your assets. To accomplish this and avoid the probate process, you can create a living trust.  Living Trust Definition A living trust is a legally-binding document that creates an entity for your assets to be secured until after your death. The person who creates the trust is known as the trustee and they have control over the living trust during their life.  As the trustee, you would set up the living trust while you are alive and add assets and property to it. Similar to a will, you can name an executor to handle the estate that's in the trust after you die. You can also name beneficiaries for the trust.  Revocable and Irrevocable Trusts There are two types of living trusts, an irrevocable trust and a revocable trust. Both types will keep your estate safe and avoid the probate process.  A revocable trust does not go into effect until after the trustee dies. They are able to make changes to the trust and withdraw assets if needed. This type of trust allows a lot of flexibility for the person creating the trust, especially if funds ever need to be withdrawn or the trust itself needs to be cancelled.  An irrevocable trust becomes effective immediately upon creation of the document. Any assets and property placed in the trust are considered property “of the trust” and no longer part of the trustee’s estate. Additionally, the trust cannot be altered or cancelled. One of the primary benefits of an irrevocable trust over a revocable trust is the assets are protected against lawsuits and most estate taxes.  Testamentary Trust Another type of trust differs from a living trust in that it is created when the testator dies. A testamentary trust is created through the Last Will and Testament of the testator. This type of trust is created from proceeds of the estate, often from a life insurance policy or other financial account.  A trustee is generally appointed to manage the trust. A testamentary trust is often created to care for minor children or loved ones with disabilities. The testator is able to set the terms of the trust, including the expected expiration date.  Setting Up Your Living Trust A living trust is initially set up with a legally binding document that lays out the instructions for the trust. It also states the appointed executor and chosen beneficiaries. An advantage of a trust is it can be handled privately without going through the probate court. You can hire an attorney to draft the paperwork, however, you are also able to create the documentation for a living trust on your own. To be legally valid, you must sign the document in the presence of a notary public.  Funding Your Living Trust Once you have set up a trust, the next step is to “fund” it. Here is how to take the next step correctly:  You must retitle any property intended to be part of the trust. Transfer the title from your name into the name of the trust. To transfer assets from a financial account or insurance policy, you need to change the beneficiary to the trust itself.  Revoking Your Living Trust If you have chosen to set up a revocable living trust, you do have the option to revoke the trust at any time. As long as you are still alive and mentally capable of making the decision, you can make the necessary changes. To revoke the trust, you need to remove the assets and property from the trust by changing the beneficiary and title holder to you or whoever you choose. After that step has been completed, you need to sign and notarize documentation (Revocation of Living Trust) to legally close the trust. 

  • Estate Planning Without a Lawyer

    Estate Planning Without a Lawyer Estate planning begins with creating a Last Will and Testament, but, there is more to learn about this process after completing the initial document. The purpose of an estate plan is to prepare your loved ones (and yourself) for unexpected events and lay out final instructions for your estate after death.  A Complete Estate Plan May Include: Last Will and Testament Durable Power of Attorney Healthcare Power of Attorney Living Will Living Trust Even if you don’t think you have enough assets necessary to create a will or trust, you still need to lay out instructions and wishes in the event of a medical emergency or death. You don’t know what can happen in the future, and without preparation, unexpected events can lead to even more stress for your family and loved ones. Any adult, regardless of marital or career status, should prepare an estate plan. Beginning the Process Preparing your complete estate plan is not as intimidating as it sounds. You can prepare all of the documents yourself without going through an attorney. You are able to work out all the major decisions for your estate plan in the comfort of your home for a low cost. Online document preparation services, such as Complete Wills, help make the experience less stressful and time consuming. Before Death Not all documents in your estate plan deal with post-death instructions. You need to prepare instructions concerning what to do when involved in a medical situation that leaves you unable to communicate your wishes.  A living will is designed to communicate your preferences regarding medical treatment in the event you are unable to speak for yourself. This document is also known as a health care proxy.  You should consider naming a durable power of attorney (POA) as part of your estate plan for times when you are, for whatever reason, unable to make decisions for yourself. A durable power of attorney stands in for you to make important financial, business-related, or even health-related decisions if you are ever physically or mentally unable to do so for yourself.  This document can cover financial and medical decisions, or be limited to a specific area. You are able to appoint multiple powers of attorney. One party can act as a durable POA and another party can step in as a specific health-related POA.  You may also consider creating an advance healthcare directive. This legally binding document actually works as a combination of a living will and a healthcare power of attorney. You can lay out your specific wishes and instructions regarding your health care if you're ever unable to communicate with medical personnel. Within this document is the ability to appoint a representative to speak for you and make necessary decisions for your health.  After Death The two necessary legal documents needed for a successful estate plan are a Last Will and Testament and a living trust. This doesn’t need to be an either-or decision because you can use a will and trust in conjunction with each other.  A will is a legally binding document expressing details of your final wishes, such as funeral arrangements, and how you want your estate to be dispersed. You can specify beneficiaries and choose your representative (the executor) to oversee the distribution of your assets.  A living trust is similar to a will because you include beneficiaries and instructions on how to pass along your assets. However, unlike a will, the trust can be set up while you are still alive and your assets can be transferred and secured in the trust until after your death.  The will and the trust can be used together to ensure nothing is missed and all of your bases are covered concerning your estate and any final wishes.  The Components of the Will The main components of a Last Will and Testament involve the estate plan, the executor, beneficiaries, and a legal guardian (if applicable). Your estate consists of all assets, property, and items you own. You may divide up your estate however you choose.  The executor is the person who handles your estate and works with the probate court to ensure everything is handled properly. Your beneficiaries can be people of any age or organizations. If your intended beneficiary is still a minor, you may need to leave additional instructions and appoint a trustee of the child’s inheritance until they are a legal adult.  Living Trusts There are two types of living trusts, a revocable living trust and an irrevocable living trust. Both entities are established by a trustee while the party is still living and secures the assets until after the trustee dies.  A revocable trust is not considered “final” because the trustee can adjust or remove any part of the estate from the trust while they are still alive. Additionally, a revocable trust does not go into effect until after the trustee dies. With an irrevocable trust, it is considered “in effect” upon being established and the trustee cannot remove anything from it.  Probate Information Probate is the legal process a deceased person’s estate goes through to determine how the assets will be distributed. If there is a will, it must be reviewed by the probate court to ensure it is valid before the executor begins dispersing the assets to beneficiaries.  The probate process typically takes two or three months, but it can be a longer procedure if the deceased did not have a will or the will was not considered valid by the court. The executor of the will is in charge of working with the probate court and managing the estate so all wishes and instructions of the testator are followed clearly.  Avoiding Probate A few ways that you can avoid the hassle of probate: Living Trust: assets in the trust transfer directly to the intended beneficiaries Joint Property Ownership: any property jointly owned by two parties is immediately transferred to the surviving owner Survivorship Deed: this legally binding document transfers ownership interest of property to a new owner upon death You can also add beneficiaries directly to your financial accounts. The assets will transfer directly without going through probate. The Importance of Planning Ahead There is more to an estate plan than making your final wishes known. Your loved ones need to know what to do in different situations after your death. It is crucial to have some peace in knowing all of your preferences and instructions will be carried out. Do not plan to fail because you have failed to plan. Estate Planning Without a Lawyer Estate planning begins with creating a Last Will and Testament, but, there is more to learn about this process after completing the initial document. The purpose of an estate plan is to prepare your loved ones (and yourself) for unexpected events and lay out final instructions for your estate after death.  A Complete Estate Plan May Include: Last Will and Testament Durable Power of Attorney Healthcare Power of Attorney Living Will Living Trust Even if you don’t think you have enough assets necessary to create a will or trust, you still need to lay out instructions and wishes in the event of a medical emergency or death. You don’t know what can happen in the future, and without preparation, unexpected events can lead to even more stress for your family and loved ones. Any adult, regardless of marital or career status, should prepare an estate plan. Beginning the Process Preparing your complete estate plan is not as intimidating as it sounds. You can prepare all of the documents yourself without going through an attorney. You are able to work out all the major decisions for your estate plan in the comfort of your home for a low cost. Online document preparation services, such as Complete Wills, help make the experience less stressful and time consuming. Before Death Not all documents in your estate plan deal with post-death instructions. You need to prepare instructions concerning what to do when involved in a medical situation that leaves you unable to communicate your wishes.  A living will is designed to communicate your preferences regarding medical treatment in the event you are unable to speak for yourself. This document is also known as a health care proxy.  You should consider naming a durable power of attorney (POA) as part of your estate plan for times when you are, for whatever reason, unable to make decisions for yourself. A durable power of attorney stands in for you to make important financial, business-related, or even health-related decisions if you are ever physically or mentally unable to do so for yourself.  This document can cover financial and medical decisions, or be limited to a specific area. You are able to appoint multiple powers of attorney. One party can act as a durable POA and another party can step in as a specific health-related POA.  You may also consider creating an advance healthcare directive. This legally binding document actually works as a combination of a living will and a healthcare power of attorney. You can lay out your specific wishes and instructions regarding your health care if you're ever unable to communicate with medical personnel. Within this document is the ability to appoint a representative to speak for you and make necessary decisions for your health.  After Death The two necessary legal documents needed for a successful estate plan are a Last Will and Testament and a living trust. This doesn’t need to be an either-or decision because you can use a will and trust in conjunction with each other.  A will is a legally binding document expressing details of your final wishes, such as funeral arrangements, and how you want your estate to be dispersed. You can specify beneficiaries and choose your representative (the executor) to oversee the distribution of your assets.  A living trust is similar to a will because you include beneficiaries and instructions on how to pass along your assets. However, unlike a will, the trust can be set up while you are still alive and your assets can be transferred and secured in the trust until after your death.  The will and the trust can be used together to ensure nothing is missed and all of your bases are covered concerning your estate and any final wishes.  The Components of the Will The main components of a Last Will and Testament involve the estate plan, the executor, beneficiaries, and a legal guardian (if applicable). Your estate consists of all assets, property, and items you own. You may divide up your estate however you choose.  The executor is the person who handles your estate and works with the probate court to ensure everything is handled properly. Your beneficiaries can be people of any age or organizations. If your intended beneficiary is still a minor, you may need to leave additional instructions and appoint a trustee of the child’s inheritance until they are a legal adult.  Living Trusts There are two types of living trusts, a revocable living trust and an irrevocable living trust. Both entities are established by a trustee while the party is still living and secures the assets until after the trustee dies.  A revocable trust is not considered “final” because the trustee can adjust or remove any part of the estate from the trust while they are still alive. Additionally, a revocable trust does not go into effect until after the trustee dies. With an irrevocable trust, it is considered “in effect” upon being established and the trustee cannot remove anything from it.  Probate Information Probate is the legal process a deceased person’s estate goes through to determine how the assets will be distributed. If there is a will, it must be reviewed by the probate court to ensure it is valid before the executor begins dispersing the assets to beneficiaries.  The probate process typically takes two or three months, but it can be a longer procedure if the deceased did not have a will or the will was not considered valid by the court. The executor of the will is in charge of working with the probate court and managing the estate so all wishes and instructions of the testator are followed clearly.  Avoiding Probate A few ways that you can avoid the hassle of probate: Living Trust: assets in the trust transfer directly to the intended beneficiaries Joint Property Ownership: any property jointly owned by two parties is immediately transferred to the surviving owner Survivorship Deed: this legally binding document transfers ownership interest of property to a new owner upon death You can also add beneficiaries directly to your financial accounts. The assets will transfer directly without going through probate. The Importance of Planning Ahead There is more to an estate plan than making your final wishes known. Your loved ones need to know what to do in different situations after your death. It is crucial to have some peace in knowing all of your preferences and instructions will be carried out. Do not plan to fail because you have failed to plan.

  • Hiring an Estate Attorney

    Hiring an Estate Attorney  When going through the process of creating an estate plan, you may not want to go through it alone without professional and legal advice. If you have concerns, it may be a good option to hire an estate attorney to assist you through the process.  Just as you wouldn’t hire a divorce attorney to help you with a real estate matter, you shouldn’t assume any general lawyer will have the same level of expertise as a lawyer who specializes in creating legally valid estate plans. An estate attorney will assist in putting together all parts of your estate plan, from creating a living will, choosing a power of attorney, drafting your Last Will and Testament, and living trust. First Steps with an Attorney  When you begin working with an estate attorney, the initial meeting should focus on them getting to know you and understanding exactly what you are looking for. As you will be discussing a number of crucial and sensitive details regarding your health, assets, and final wishes, you want to be sure you and the attorney are the right fit for each other before you proceed.  After the first consultation, the process of creating your estate plan should begin and take anywhere from one to two weeks to lay out an initial plan.  Creating the Main Plan The main focus of your estate plan is to put you and your preferences down on paper. You need to address your instructions regarding healthcare, final arrangements, and your desires for dispersing your estate.  Questions Regarding Personal Instructions: Your Health: What medical treatments would you allow or not allow if there is a medical emergency and you cannot communicate? Do you have any wishes regarding life support or resuscitation?  Your Estate: What are your assets? Do you own property? What types of financial accounts do you have? Do you have life insurance?  Beneficiaries: Who will be given portions of your estate? How much will each person receive? Executor and Guardians: Who will be your chosen executor for your will? If you have minor children, who will you choose as their legal guardian?  Next Phases in Preparation After your estate attorney has compiled all of your financial information and received the necessary answers to crucial questions, the next step is creating the documents needed for your estate plan.  The Legal Documents in Your Estate Plan May Include the Following: Living Will or Advance Healthcare Directive Last Will and Testament Durable Power of Attorney Living Trust These documents cover legal before and after death situations to ensure your wishes are covered in any circumstance and will be followed as you planned.  Once the documents are prepared by your estate attorney, you must have them signed. Although not required for every document, you may still consider having each contract notarized. Your will must include two witnesses who are not listed as beneficiaries.  Although an attorney is not required to create a legally binding estate plan, you may find the experience and professional advice offered by an estate lawyer worth the investment. 

  • The Legal Requirements for a Will

    The Legal Requirements for a Will As you begin the process of creating your Last Will and Testament, you have the opportunity to customize this document for your specific instructions and wishes. However, there are some legal requirements you must adhere to in every state.  Minimum Age Requirement Intent of the Testator Capacity of the Testator Required Signatures and Witnesses Minimum Age Requirement Regardless of your resident state, the minimum legal age to create a Last Will and Testament is 18 years old. There are some exceptions. There are some exceptions, such as Georgia, where the minimum age is 14. While some states may allow emancipated minors to create a will, other states like Arkansas and California still require individuals to be at least 18 years old to make a legally binding will.  Special circumstances may be permitted by the courts, especially if the minor in question has a large estate from an inheritance. Intent of the Testator Every Last Will and Testament must begin with a clearly stated intention by the testator (the person creating the will) of the reason for the document. Your will must include the phrase “This is the last will and testament of [your name]” in order to be legally recognized by the court. Without that specific wording, the document is not legally considered a will.  This requirement is in place to protect you from being unduly influenced into giving away your estate. It helps ensure the next requirement concerning the mental capacity of the testator.  Capacity of the Testator Regardless of your state of residence, the law requires you to show you are of sound mind when creating a will. This is another legal requirement put in place to protect the testator against manipulation and theft.  Being of “sound mind” means, at the time you create and sign the will, you are fully aware of what you are doing. Even if you have been diagnosed with diseases that could impair your judgment such as dementia or Alzheimer's, you can still sign a will. It may be smart to include a letter from your doctor stating you are within the medical necessity to make decisions regarding your will.  Required Signatures & Witnesses For your Last Will and Testament to be legally valid, you must sign the document. You are required to have at least two legal adult witnesses who can verify your mental state, and show that the document is your will.  If for any reason, the will is later contested, the witnesses may be called to verify the validity of the document and the signature of the testator. Including a Self-Proving Affidavit may help your loved ones avoid any unnecessary delays regarding your estate. A Self-Proving Affidavit is a form to validate your signature verified by you and your witnesses under oath.  Most states may require witnesses that are not involved in the will such as an attorney or a notary public. These parties are known as “disinterested witnesses.” Although some states like Massachusetts and California allow “interested” witnesses to sign a will, there might be a comforting sense of neutrality if you choose individuals who have no particular stake in your estate.  Invalid Wills If any of the previously discussed legal requirements for your Last Will and Testament are not met, the document may be considered invalid. If this happens, the probate court may revert to a previously signed will (if it exists) or go by state intestate succession laws. Your estate would then go to your closest and most direct relations.  Following the law when creating a will is highly important. Not only so your final requests and instructions are honored, but also to ensure your estate is distributed as you see fit.  Other Types of Wills While a traditional printed Last Will and Testament is the most common, there are a few other kinds of wills also accepted by the court.  A handwritten will, also known as a holographic will, is completely handwritten and signed by the testator. Witnesses are not required, but the age, intent, and capacity rules still apply. At least two disinterested witnesses may be called to authenticate the will maker’s handwriting. An oral will is similar to a deathbed confession. An oral or spoken will is not generally accepted in most states, except under limited circumstances, such as an imminent threat of danger, or the spoken will of soldiers in warfare. A video will is slightly more widely accepted than an oral will, but still may not be considered valid in states that require the document to be written or printed. The upside of a video is it shows proof of the testator’s intent and mental capacity. 

  • The Responsibilities of the Executor of a Will

    The Responsibilities of the Executor of a Will Once you have decided to create a Last Will and Testament, one of your first major decisions regarding your will is to appoint an executor. Here is an in-depth explanation of the role of an executor and how to go about selecting the right person for the job.  Think of the executor as a personal assistant to your estate and will. This person is responsible for ensuring all wishes, decisions, and instructions laid out in your will are carried out completely and correctly. The executor must also work closely with the probate court to guarantee legal requirements are covered.  Appointment of the Executor Even though the testator makes the initial selection of their executor, the actual appointment is officially made by the probate court after the testator has passed away.  The process begins when the testator’s estate is “opened” before the court. The will must also be filed with the court along with a death certificate. The request to appoint the executor is made at the same time as the other filing. Generally, this is all handled by the chosen executor, although an estate attorney, separate from the executor, can also begin the process.  The executor may or may not need help from an attorney who specializes in probate. The court may require the estate to appoint legal counsel.  If you do not choose an executor in your will, your loved ones can still make that decision for you after you die. If the family cannot agree on an executor, the probate court will step in and make the choice for them. Appointing an executor can reduce stress and additional complications related to your will. Job of the Executor The primary responsibility of the executor is to ensure the instructions in the testator’s will are carried out fully and completely. Another main job of the executor is working with the court to get the testator’s estate moved through probate as quickly as possible.  Because the executor is tasked with carrying out the instructions and wishes in the will, this person is given authority to access bank accounts and review the sensitive financial information of the estate.  Primary tasks of the executor include: Gathering the assets of the estate Settling debts related to the estate Distributing the estate to the beneficiaries After the court has officially appointed the executor, they must begin gathering up all parts of the testator’s estate. This includes insurance policies, bank financial statements, and the deed(s) or paperwork concerning any real property owned by the testator. After all the estate’s assets have been verified, the total worth of the estate is calculated and the information is submitted to the probate court.  The next step in the process is settling any debts against the estate. This must be done before any assets are divided off to the beneficiaries. This task also includes paying off and closing accounts (i.e. credit cards) and making notifications of the testator’s death to any of the accounts. The executor is also responsible for contacting the insurance company and any government agencies (i.e. Social Security Administration) and sending any required documentation.  After all the proper notifications have been made and any outstanding debts have been settled, the next job of the executor is to distribute the testator’s estate to their beneficiaries. Part of the distributing process may include writing checks, handing over title paperwork, or even selling assets or property to be divided amongst beneficiaries.  Expectations of the Executor The responsibility of an executor for a Last Will and Testament is an important and highly detailed administrative role. It requires a highly responsible and trustworthy individual who will guarantee all the details related to the will are fully honored. Such an appointment should not be made lightly and should be discussed with that person so they are completely aware of all responsibilities that come with this position.  Legal Requirements There are a few legal requirements to keep in mind when choosing the executor for your estate: Must be at least 18 years old Must be a current resident of the state Not convicted of a felony

  • Understanding the Basics of a Last Will and Testament

    Understanding the Basics of a Last Will and Testament Estate planning should begin with a Last Will and Testament. This legally-binding document is necessary to protect your wishes and interests concerning your estate after you have passed away. A Last Will and Testament allows family members to know your final instructions and helps avoid legal disputes and other issues. Without a will, the future of your assets after you die will be determined by your state’s law instead of your personal wishes.  The basic information you should begin with includes:  the components of a will the reason for choosing an executor the process for assigning beneficiaries the selection of guardians for minor children (if applicable) What’s in a Will?  A legally-binding Last Will and Testament contains these main components:  Declaration Executor Beneficiaries and Assets The Residuary Clause Appointing Guardians The Declaration The declaration states the intentions of the person writing the will (also called the testator), including basic identifying details (name, address, etc.) and a legal statement that the will is legally binding and revokes other documents.  The Executor  Just as your vehicle cannot (yet) drive itself from Point A to Point B, nothing can happen with the Last Will and Testament without someone “at the wheel.” The executor is the person who is responsible for carrying out the testator’s wishes in the will. They disperse the assets, handle any debts, and work with the probate court to ensure the legal side of the process is covered.  Selecting an executor is a vital part of establishing a solid estate plan. As the executor is responsible for handling the personal and legal facets of a will, the appointed person should be someone you trust to oversee sensitive tasks. If your will does not specifically name an executor, the probate court will appoint someone to preside over your estate. One of your first tasks when setting up your will should be to name an executor.  Beneficiaries and Assets  Because the primary purpose of a Last Will and Testament is to settle and disperse your assets, naming your beneficiaries is an important part of the document. As the testator, you may name any person or organization as your beneficiaries. The “Bequest” section is absolutely vital to the will because it lays out how the testator wishes to disperse their estate and which assets go to which beneficiary.  You are also free to distribute your assets and property however you desire. For example, you can designate specific items to specific beneficiaries — your child may get your furniture while your sister gets your collection of pearls. You may also choose to divide your estate by percentages — your spouse receives 75% of the estate and the remaining 25% goes to your brother. Assets like money, stocks, and bonds are easy enough to divide among the named beneficiaries. Real property (homes, vehicles, land) is not complicated unless you decide to leave your children a percentage of your home or property. It will be helpful to provide the executor with additional instructions on how your wishes should be carried out (i.e., sell property and disperse funds accordingly).  The Residuary Clause  When putting together your will, you should strongly consider including a residuary clause for any property, assets, and items that are not specifically mentioned in the will. That way, if you forgot about an asset, or you gain an asset after you execute the will, the residuary clause acts like a catch-all, ensuring these assets get divided as you wish. It will help your executor properly delegate portions of the estate not explicitly identified and alleviate any potential disputes among your loved ones.  Appointing Guardians  This part of the Last Will and Testament is only necessary if you have underage children. Even if you think your children will be adults by the time you pass away, you should still take time to carefully select and appoint guardians for your children now.  This is a critical decision that should be carefully weighed. The legal guardian has control over both your child and any part of the estate left to your child (meaning any money or property) until legal adulthood. Estate Document Necessities  Even though you will customize your Last Will and Testament to your specifications, there are certain legal necessities for any estate document. The testator must be a legal adult (18 years old and older) and of sound mind. In other words, the person making the will should fully understand what they are doing. The testator must sign the will in front of a minimum of two witnesses. A will is not considered legally valid if the testator signs the document under any threats or with ill intentions. For example, if a family member pressures you into changing your will for their gain, or if you are threatened with harm, a court will not enforce it.  You may also consider creating a Self-Proving Affidavit. This legally-binding document verifies the signatures of all parties (testator and both witnesses) and is signed before a notary. This will speed things along in probate court when signatures have to be verified.  Putting the Document Into Action Even though you plan your will before your death, nothing is filed until you pass away. At that point, the executor (or another responsible party) takes the will to probate court for approval. If there is no Self-Proving Affidavit, then the witnesses’ signatures must be verified before anything else can happen. The executor is also officially appointed during this time and can begin their duties.  Who Needs a Will?  The short answer is everyone needs a will. Even if you do not have substantial assets or property to distribute, a will covers more than just distribution of things to beneficiaries. Your will can include funeral instructions, legal guardian appointments, and other requests you may have that do not deal with dividing up assets or property. Additionally, if you do own property and die without creating a will, the state takes charge of your estate and decides what happens to your assets.  Do I Need a Lawyer to Prepare My Will?  You can prepare a personalized, legally-binding Last Will and Testament without using an attorney. Simply bequeathing specific assets to certain people and making sure your children are taken care of by the people you want to take care of them is not overly complex and can be done through online services.  You may need to seek legal counsel when drawing up a will if you have a sizable estate. The government does not tax an inheritance until it reaches a significant amount (the amount periodically changes, but is always in the millions.) This is where it can become more complex.  Creating Your Estate Plan An estate plan is more than just creating a will. A will is a great place to start, but there are other important considerations, such as a Living Will, a Power of Attorney, an Advance Directive, and a Living Trust. These documents cover potential situations before and after death and all help ensure your wishes are carried out. If you want more information on these other components of estate plans, keep reading through our articles to shed some light on each part.  

  • Understanding the Importance of a Codicil

    Understanding the Importance of a Codicil If you have already created a Last Will and Testament, you may want to go back and make some edits to the document. It isn’t necessary to create a whole new document for some minor changes. All you need to fix it up is a codicil.  A codicil is a legally binding document allowing changes to be made for a will without completely redoing the original document. You could consider a codicil as an amendment to a contract. Will Basics To better understand the importance of a codicil, you need to know a few basics about a Last Will and Testament. A will is a legally binding document that offers final instructions from the testator (creator) of the will and disperses the person’s estate to their chosen beneficiaries. A will doesn’t take effect until after the testator has died.  A will must be signed by the testator and two other witnesses to be legally valid. The testator must show they are mentally capable of making decisions laid out in the document.  The Benefits of a Codicil With the many decisions made in a Last Will and Testament, you are likely to have some minor changes you might want to make. One example would be you appointing your spouse to be your sole beneficiary and indicating your sister as your back up beneficiary. However, you later decide to change some terms and distribute your estate equally between your sister and brother (still as back-up to your spouse). Although you may have initially assumed these changes require you to recreate your will, all you need to do is include a codicil to indicate these changes.  Since the codicil acts an amendment to your will, this document should be stored together with the will so the executor can file both documents with the probate court at the same time. A Codicil vs a New Will Even though a codicil is a helpful addition to a will when making small changes, there may be times when you need to scrap your original document and create a new legally binding will.  Adding more documents to any contract can always leave the potential of confusion regarding the original terms of the contract. This is no different with a codicil. It allows you to insert changes you want to make without redoing the entire document. However, it's another set of paperwork that can potentially be lost or misunderstood in regard to the testator's final wishes in their will.  Suppose your original will leaves all of your estate to your brother, with additional instructions to pass it to his children when he dies. If you then change your mind and create a codicil to now leave your estate to your brother AND your sister, what about the additional instructions? Do you still intend for your estate to go to your brother's children after your brother dies, even if your sister is still alive? Many questions and situations must be considered when making a change to your will. It may sound like a complicated scenario already, but it can cause further confusion without you around to clear up the situation. A codicil makes sense when you want to make minor changes to your original will. If the additions or amendments are extensive, you may consider creating a new will to ensure all your wishes and instructions are clearly understood and followed.  A good rule of thumb, whether you are using a codicil or making a new will, is to provide as much information and instruction as possible. You may think you are providing too much instruction, but it's always better to have more than not enough.