What would happen to your family if you died? If you don’t know the answer to that question, then you probably haven’t prepared a last will and testament. It’s a task that a lot of people put off, particularly when they’re young and healthy. They think it can wait.
At Addition Financial, we work with our members to ensure that their financial affairs are in order regardless of what phase of life they’re in. We sometimes get questions about preparing wills and we think it’s essential for our members to understand that having a will is essential. With that in mind, here are 10 best practices for preparing a last will and testament.
#1: Don’t Allow Anyone to Pressure You
When you prepare a last will and testament, the final document should reflect your personal wishes about how to dispose of your assets in the event of your death. While it’s unlikely that anybody will try to pressure you about what to do with your money and belongings, we still think it’s important to note that nobody should influence you to create a will in their favor or alter your wishes.
It may be best to keep the preparation of your will private and mention it only to people whom you trust. For example, you will probably tell your spouse that you’re preparing a will, especially if you have children together. Keeping the details of your will private will minimize the risk that someone will try to influence you to change it.
#2: Take an Inventory of Your Assets
A good first step before you write your will is to take inventory of your assets. Even if you have good control over your money, there may be accounts or assets that you forget. Having a list to work from will ensure that your wishes are clear.
Your assets may include:
- Bank accounts
- Investment accounts
- Material belongings (real estate, vehicles, jewelry, furniture, family heirlooms, etc.)
You will also need to think about your responsibilities, including children and pets. Your will should specify who will take care of them if you die.
#3: Choose a Personal Representative for Your Will
You may be familiar with the idea that a will needs an executor. In the state of Florida, the will is administered by a personal representative who is chosen by the court.
While the court will make the final decision, you can and should express your wishes about who the personal representative will be. The court will take your wishes into consideration and will – unless there is an obvious problem with the person you designate – honor your wishes.
The person you choose should be someone who is responsible and willing to take on the job of administering your will. If you have a large or complex estate, the job may be time-consuming and require a lawyer. Make sure to choose someone you can trust.
#4: Be Realistic About Bequests
One of the areas where things can get tricky for your heirs is in the area of bequests of personal belongings. Cash is easily divided but other belongings may be contentious.
Let’s look at an example. If you have two adult children and a vintage car you want to leave to someone, it probably isn’t a good idea to leave the car to both of them. Only one of them can drive it at a time and someone needs to store and maintain it. Asking them to share it may cause problems.
The alternative would be to leave it to one and leave other assets to the other child. Or, you might choose to express that the car should be sold and the proceeds divided. The key is to minimize the risk of disputes after you die.
#5: Pick a Guardian for Your Children
If you have minor children, it is essential that you specify who you want to be the guardian of your children after your death. While you might be tempted to simply draw up guardianship documents, they don’t have the same impact as a will.
You should check with potential guardians before adding them to your will. If you die, it will be their responsibility to care for your children until they reach adulthood. They may also be responsible for managing money you leave to your kids.
#6: Do Not Create a Joint Will
If you’re married and have minor children, you might think that creating a joint will with your spouse is the way to go. However, there are some concrete reasons that’s not a good idea.
The first is that you and your spouse are unlikely to die at the same time. If you have one will for both of you, it’s likely to spend more time in probate and more likely to cause problems for the survivor.
The second reason is that joint wills where one party is alive are more likely to get caught up in probate and be disputed. Under normal circumstances, joint accounts held by spouses would automatically go to the surviving spouse. If you have a joint will and specify a third party – say, a revocable trust for your kids – as the beneficiary, it complicates things and may make settling your estate more difficult for your personal representative.
#7: Store Your Will in a Secure Location
It’s an old mystery movie trope that when someone dies, there’s a frantic search for their will. While that scenario might be entertaining in a film, it’s the last thing you want for your survivors and heirs. Finding your will shouldn’t necessitate a scavenger hunt.
Mary Kaplan is an attorney and the owner of The Kaplan Firm. She says:
“I like the idea of the fireproof safe. Safe deposit boxes are secure, but they're almost too secure sometimes. They can be notoriously difficult to get into after someone passes away. With most banks, if the person that you want to get into that a safe deposit box has not walked into the branch and signed that signatory form with you present before something happens, then they're not going to be able to get in to that safe deposit box, even if they are named as your personal representative or your agent under power of attorney. Just make sure somebody besides you and your spouse knows the combination or knows where the key is.”
Of course, when you update your will you should make sure to add the new will to your safe as well.
#8: Your Will Must Be Witnessed and Notarized
Did you know that a will can be disputed if it isn’t witnessed and notarized? It’s a common misconception that you can simply write a will and sign it, but the truth is that it may not be held up in court if it isn’t properly executed.
Mary Kate D’Souza, Chief Legal Officer of Gentreo, told us:
“It is important to follow the Florida Self Proving Affidavit statute and have two independent (not beneficiaries of your will) witnesses and a notary, so that your will will be allowed in court.”
Note that the witnesses must not be beneficiaries of your will. Independent status is essential because if a beneficiary witnesses the will, it may be an indication to the court that they influenced the contents of the will. The notarization proves that you signed the will.
#9: You Can Create and Execute Your Will Online
Another tip from Mary Kate D’Souza has to do with preparing your last will and testament in the midst of a pandemic. You should know that the state of Florida allows residents to create E-wills online. She says:
“It should be noted, especially during the pandemic when many are in quarantine, that Florida has an E-Will statute which enables you to create, execute and store your will online.”
Creating an e-will will require you to attend an online notarization session. You will be asked to answer a few questions designed to ascertain that you have created the document of your own free will. You can find additional information here.
#10: Review and Update Your Will Regularly
The final tip is to review and update your will regularly, particularly if you have minor children or you have acquired new assets. Mary Kaplan told us:
“For people with small children, they should revisit their wills and estate plans every two or three years. You should also name the guardian of your small children in case you and your spouse both pass away. For people with older kids, I recommend updating your will every two to five years. Laws change and people change which is why it's smart to update your will. For people with children who have disabilities, there are extra steps you need to take for that child. For example, setting up a will with a special needs trust in it.”
Updating your will ensures that there will be minimal confusion when you die.
Preparing a last will and testament is something you should do as soon as possible. The 10 best practices we have listed here will help you do it properly and minimize the risk of probate complications or disputes after you die.
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