 When
a loved one dies, it is a traumatic event for the
family. Be sure your family and friends do not become
entangled in haggling and legal procedures in the
disposition of your estate by having your will prepared
in advance.
Many people put off preparing their will because they
think they need to have an attorney prepare it. On the
other hand, it probably is not as expensive as you think
to have an attorney prepare your will if you are willing
to shop around.
With today’s technology, you have access to many online
forms you can use in preparing your “last will and
testament”. These forms make it easy if your estate is
simple and straightforward. You merely designate who you
want to receive your property, including your home,
automobile, personal items and investments. If you have
a complex financial portfolio, it would be advisable to
seek the advice of an attorney. The most important thing
to remember is that if you die without a will, your
estate will be determined by state law and if no one can
be found to inherit your property, it goes to the state.
For those of you who are parents, it is extremely
important that you have a will that names a guardian for
your minor children should both of you die. Otherwise,
the state will decide who cares for your children.
When designating a guardian for your minor children in
the event that both of your children’s parents die, it
is important that both you and your spouse designate the
same person to be the personal guardian of your minor
children. That same guardian can also be designated to
manage any property or trusts that you leave to your
children. This trustee would manage the property or
trusts until your minor children reach legal age, or an
age specified by you, to inherit the property.
As for surviving spouses, if you live in a community
property state, your surviving spouse is entitled to
half of your estate. The other half can go to anyone
whom you designate. Other states require the surviving
spouse to go to court to claim their share of the
estate.
In the rare event that someone should challenge your
will, they would have to prove to a court that the will
was invalid because your signature was forged, you were
not
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of sound mind when you wrote the will
or you were coerced into signing the will. These claims
do not usually stand up in court because they are
usually brought by a disgruntled family member who feels
cheated for not receiving what they believe is
rightfully theirs.
After your will is written, it must be signed and dated
by you in the presence of witnesses (usually two
witnesses). Many states require that those who witness
the signing of your will are not designated to receive
any part of the estate.
While there are no requirements that your will be
notarized, having you and your witnesses sign the
document in the presence of a notary public will
simplify the validity of the will when you die. Be sure
your signature is placed at the end of the will or your
will could be invalidated by the courts.
It is not necessary to record or file your will with any
government agency, but be sure you keep it in a safe
place, such as a safe deposit box at your bank. Be sure
the document is accessible to your executor, the person
you designate to handle the affairs of your estate. You
should also prepare a document for your executor with
up-to-date information on your credit cards, insurance
policies, bank information and other financial
information and keep a copy with your will.
Your will can always be updated should changes occur
like marriage, adoption, births of additional children,
death or divorce. Other changes might include changes in
tax law or you might decide to appoint a different
executor of your estate. In these instances, you can
either re-write your will or add what is known as a
codicil, which is an addition to your original will.
With today’s technology, most attorneys just re-write
the will rather than prepare a codicil.
While there is software available to you for other
estate planning documents, including phyisican
directives and durable power of attorney, be sure you
undertand the implications. If you have any questions,
it would be advisable to consult a professional.
While you are well and healthy is the best time to
prepare your will so you can give careful thought on how
you want your estate managed when you’re gone.
CONSUMER TIPS is provided as a public
service by the Missouri Independent Bankers Association
AND
Community Bank of the Ozarks
P.O. Box 43
Sunrise Beach, MO 65079
(573) 374-5245
1-800-927-4314
www.cbobanker.com
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