The Importance of Having a Will

The average life expectancy in the United States today is 78 years old. This number has increased from year to year, and will likely keep increasing. Even so, and despite our best efforts, none of us will live forever. And after we are gone, our loved ones will be left with the work of sorting everything we’ve left behind.

Although we all know that death is one of life’s few certainties, we are uncomfortable talking about this inevitability. We resist documenting our wishes and making the important and helpful plans to guide our family members once we’re gone. If you procrastinate too long – meaning you never get around to taking care of these matters – much of what you worked so hard to build throughout your lifetime will not be distributed according to your wishes, but according to provisions set out in state statutes. Under these statutes, the people you care about most may receive only a fraction of what you had hoped would become theirs.

Now is as good a time as any to reflect on these issues, to take stock of what you do or don’t have in place to guide your heirs, and to take needed steps to give your family the peace of mind in knowing they have satisfied your last wishes. One of the key items you must have is a will. A will designates the person, people or entities you would like to receive certain types of property. This property is generally anything you own by yourself in your own name. It does not include property you own jointly with a spouse, and it does not include life insurance proceeds, retirement accounts, or other accounts for which you have designated a beneficiary.

To be sure you have a good understanding of which property will pass to whom and how, you should consult an attorney. An estate planning attorney will be able to advise you of the various options you have for passing your property to others and will know the tax implications for each. This information will help you decide the most effective way for your property to benefit your loved ones.

Before you meet with your attorney to discuss your will, make an inventory of your property. Include bank accounts, credit cards, investments, personal property, everything you can think of. Knowing what you have will help you decide who should receive it. You should also make a list of the beneficiaries you have designated for life insurance policies, retirement accounts, annuities, etc. Provisions in a will do not override these designations. Knowing who will receive what from these funds may help you decide how you wish to distribute your other property.

If you have minor children, your will is how you designate who you would like to care for your children (a guardian), and to manage their finances (a trustee). Generally, the best plan is for one person (or a couple) to take care of your children’s safety and well-being, and for a different person to manage their finances. Keeping these responsibilities separate creates checks and balances that better ensure your children’s continued physical, emotional and financial well-being.

If you have one or more charities that are important to you, consider whether you would like to make a gift to them in your will. This is a gift that anyone can afford, and it leaves a legacy that reflects your values and interests. A good estate planner can help you make charitable gifts in ways that will help to protect your estate’s value for your heirs, creating a double-win. If you have charitable interests, be sure to investigate all of your options with your attorney carefully. You will likely be surprised by the amount you are able to give to charity through your will.

Just getting started to prepare your will may be the most difficult part of the process. Once you have taken the first steps – setting an appointment with an attorney and inventorying your property – the momentum will keep you moving forward until you have your will and other appropriate estate planning documents completed. Keep in mind that your will can be changed any time. In fact, experts recommend that you revisit your will at least every five years. Laws and personal circumstances change. As you reach life milestones, such as the birth of a child or retirement, review your will and decide whether any updates are needed. You will have a great sense of satisfaction when you have your estate plans in order, and your family will be immeasurably grateful.

Susan Furgeson is an attorney with the law firm of McNeely Stephenson and is a member of the Major Hospital Foundation Planned Giving committee. The Major Hospital Foundation supports Major Hospital, a non-profit organization, through charitable gifts used for education, patient assistance, and capital purchases.