What Your Last Will & Testament Will (And Will Not) Do - Part 1
August is designated as “National Make-A-Will Month,” emphasizing the importance of having a will as part of your estate planning. Surprisingly, only 33% of Americans have completed this critical first step, according to Caring.com’s 2022 Wills and Estate Planning Study.
Understanding Your Will’s Role
A will is a legal document outlining how your assets are distributed among your surviving family members upon your death. Here’s what a will allows you to accomplish:
Asset Distribution: You can specify how assets solely owned by you should be divided after your death. Without a will, state laws determine asset distribution, which may not align with your wishes. However, it’s important to note that assets with beneficiary designations or co-owned assets are not governed by your will.
Executor Appointment: In your will, you can name an executor—also known as a personal representative—to manage your estate. This includes tasks such as probate court filings, asset management, debt settlement, tax filing, and asset distribution to beneficiaries.
Guardianship for Minor Children: For parents, a will is crucial for naming guardians to care for minor children in the event of your death. However, solely relying on a will for this purpose may not adequately protect your children. Consider our comprehensive Kids Protection Plan® to ensure their well-being in any circumstance.
Support for Trusts: A “pour-over” will serves as a backup for assets not transferred to a living trust during your lifetime, ensuring they are directed into the trust through the probate process.
The Limitations of a Will
While a will is an essential first step, it has limitations:
Asset Types: It only covers assets held solely in your name.
Complex Assets: Managing complex or substantial estates may require additional planning beyond a will.
Probate: Assets subject to probate can involve delays and expenses.
Moving Forward
Your will is foundational but works best in conjunction with other estate planning tools like trusts, powers of attorney, and healthcare directives. These tools provide comprehensive protection and ensure your wishes are honored without burdening loved ones during a difficult time.
Looking Ahead
In part two of this series, we’ll explore what a will does not cover and detail essential estate planning strategies to fill potential gaps. Whether you’re starting your estate plan or need a review of an existing one, contact us for personalized guidance to safeguard your family’s future. Start your planning process today to secure peace of mind for tomorrow.
This article is a service of Zarda Law, S.C. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Legacy Planning Session, during which you will get financially organized and make all the best choices for the people you love. You can begin by scheduling a Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.
