Wills: one way to make your wishes known

The end of your life can be the beginning of serious decisions for loved ones you leave behind. One way to help make those decisions easier is to have an up-to-date will. A will is a legal document in which you make your wishes known about the care for your property/assets (your estate) or any minor children or dependents you have, and to appoint individuals or an institution to wrap up your affairs.

Wills are for all adults, not just for people with significant wealth. Even if you have limited money and other assets, a will lets you decide what happens to those possessions.

What happens if you die without a will?

Without a will, the disposition of your estate will be decided by the state and care for dependents may be overseen by courts. Dying without a will is known as dying intestate. In intestacy, state laws will determine how assets are distributed – which may not be according to your wishes and may create extra expense.

A will, with clear directions for distributing assets, can help reduce the risk of family tension and arguments about what happens to your money and other possessions.

Providing for loved ones

People often first think about creating a will to appoint a guardian to care for minor children or other dependents in the event that both spouses die. In choosing a guardian, consider the needs of your children and the capabilities of the person you choose to raise your children.

If your children are old enough to understand, discuss this important decision with them. Of course, discuss it also with the person you wish to be their guardian before naming him or her in your will. We recommend choosing an alternate guardian in case the first person named cannot serve. You also may choose a couple as guardians. Learn more about guardianship in this article, “Who will act for you?”

The financial needs of your survivors are a primary concern in considering the contents of your will. Spouses traditionally ensure that the surviving spouse is cared for financially. Parents also usually desire fair – though not always equal – distribution among children and sometimes, grandchildren.

Parents with minor children may decide all or part of their estate will be set aside in a trust to provide financially for children’s care. See this article for more information on trusts. A trust for minor children typically is included in the wills of their parents.

If you have others who depend on you, such as a disabled adult child, a disabled spouse or dependent parents, you may direct funds to help pay for their care through your will and a trust.

Wills also may distribute property such as cars, personal collections and family heirlooms to specific loved ones. You may choose to direct family heirlooms in your will, particularly if you believe division of them after your death would create dissension in your family. Many people have provisions in their wills to give away personal items in a separate but related memorandum.

Reflecting your faith and values

A will is a wonderful place to reflect your faith, values and priorities as well as your commitment to your family. Some use their wills to make final faith statements that show their Christian commitment and beliefs.

You can use your will to donate gifts to your congregation, a church agency or a charity that you care about. Many people see these estate gifts as a financial way to make a final statement of their faith.

How much you designate to charity often depends on the economic needs of your loved ones. A greater portion may be left to charity if your heirs are self-sufficient. A common charitable bequest is a 10% tithe to benefit the church and charity. Others view charity as another “child” to include in an even distribution of assets. For example, if you have three children, you may divide your estate four ways, with the fourth share directed to charity.

Naming a personal representative

A critical component of a will is naming a personal representative, usually called an executor. This person or institution will ensure that the wishes you state in your will and the legal requirements of settling your estate are carried out. See this article titled “Who will act for you?” for more information on naming an executor.

Seeking help from others

Because wills can be complex and state laws vary, we highly recommend that you work with a competent attorney licensed in your state of residence to create your will. Something as important as your will should be handled by a trusted, experienced professional.

Many attorneys charge a modest fee for a simple will – a small investment for the assurance of a valid document.

Remember to update your will

It is important to update your will as your life changes. Marriage, remarriage, births, deaths, changes in income, the sale or purchase of property, and changes in tax laws can create the need for an updated will. A general rule is that wills should be reviewed – and updated if necessary – every five to seven years.

Questions for getting started

• When should I create my will?
• Who should receive my assets/estate? Have I talked to my family about who will receive my possessions?
• Which charities should I include as beneficiaries?
• When should I update my will?