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Ask WomensFinance? : Answer |
Q: Do I need a will?
A: A
will is a legal document that transfers your assets to your beneficiaries when you die.
It's the primary means of controlling who inherits your property, your personal effects,
and other assets that do not have an assigned beneficiary. By having a will, you'll be
able to designate an executor to administer your estate and a guardian to care for your
minor children.
Writing a will is one of the most important steps you can take when estate planning. It
doesn't matter whether you're married, a single mom, or divorced. If you die without a
will, you'll create a lot of heartache for the loved ones you leave behind. The courts
will divvy your assets and pick someone to raise your children in your absence. Is that
what you really want?
1) Who Should Have a Will?
- Single women.
- Single mothers.
- Married women.
- Women who remarry.
- Divorced women.
- Widows.
- Elderly women.
2) Elements of a
Will
The basic elements of will:
- Your Name and Address.
- Names of Family Members and other Beneficiaries.
- Names of Friends and Charities.
- Alternate Beneficiaries.
- Name of Executor.
- Name of Alternate Executor.
- Name of Guardian to care for your minor children.
- Name of Alternate Guardian.
- Name of Trustee to manage your children's assets.
- Specific Gifts.
Trusts.
What assets will be used for the cancellation of debts (estate and inheritance taxes).
What debts are not to be
paid off.
What assets are to be sold.
Other wishes.
Your Signature.
Witnesses' Signatures.
3) Preparing a Will
You should give some thought about the contents of your will. Here are some basic steps to
help you keep on track:
- A. Outline of your objectives.
- B. Pick an executor.
C.
Inventory of your assets.
D.
Inventory of outstanding debts.
E.
Determine your beneficiaries.
F. Select
charities.
G.
Determine special gifts.
H. Decide
on distribution of assets.
4) Storing a Will
Once you've written your will, store it in a safe place that is accessible to others after
your death. Place copies in a safe deposit box or a fire-proof box (at home) and ensure
that a close friend or relative knows where to find it when needed. You should leave the
original with the lawyer who drafted it.
Tip: In some states, a safe deposit box is sealed upon the death
of its owner. By putting your original will in a safe deposit box, you may delay the
probate process for your heirs. They will have to get permission to open the box before
your estate can be administered -- a costly situation.
5) Updating a Will
You should review your will periodically to make sure it reflects your current wants and
needs. Major changes will require a new will. Minor changes are handled by drafting an
amendment (know as a codicil) that is signed in front of witnesses. If you change
your will, you'll need to destroy copies of your old will, including the original.
Consider revising your will if any of these conditions apply:
- After five years.
- Marriage.
- Divorce.
- Birth of a child or adoption.
- Change in health condition.
- Death of a spouse or heir.
- Change of residence.
- Change in income.
- Increase in net worth.
- Early gift to heirs.
- Changes in property value.
- Change in estate taxes or probate.
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