The Basics of a Will
A will, or last will and testament, is a legal document that specifies how your assets are distributed, appoints an executor to manage your estate, and names guardians for minor children. Many people assume that wills are only for the elderly or people with a lot of assets. This is not true. Anyone may find a benefit in creating a will. It allows you to communicate your personal wishes clearly to your loved ones after your passing. There are numerous things to consider when beginning your estate planning process, and hopefully this article will help clear up some of the uncertainty.
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A beneficiary in a will is a person or entity (business, charity, etc.) that is legally designated to receive specific assets, money, or property from an estate. Chosen by the will’s creator, or testator, they are transferred the assets designated to them by the executor, according to the will’s instructions. A primary beneficiary is the person who receives the gift, while a contingent beneficiary receives it only if the former is unable to.
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An executor manages the estate, or carries out the provisions of the will. Their responsibilities may include paying debts, filing taxes, and distributing assets to beneficiaries. In all, the executor acts as the estate’s personal representative throughout the probate process. As for who can be an executor, it is usually a reliable adult, family member, or friend, but may also be a professional or institution. Additionally, your executor must be of legal age, a U.S. resident, and of sound mind. Depending on your state of residence, there may be further requirements. For example, in North Carolina a felon cannot serve as an executor.
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One of the most important components of a parent’s will is the designation of guardians for their minor children. While this may seem straightforward, there are many factors to consider when deciding who should serve in a guardian role:
Child’s Comfort: choosing an individual your child already knows and is comfortable with could ease a taxing transition.
Location: choosing an individual that would allow your child to remain in proximity to friends/family.
Physical Health: choosing a healthy individual that is physically capable of raising children.
Values and Morals: choosing an individual that aligns with your values regarding education, religion, discipline, and general principles.
Financial Resources: choosing an individual that may provide a stable environment for your child, even if not wealthy.
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Though not strictly required in a will, clearly outlining your funeral and burial preferences could ease the burden on your loved ones. Things you may consider including in this section could be:
Funeral Service Details: Do you want a formal service or something more casual? Would you prefer a specific religious ceremony, a celebration of life, or no event at all?
Cremation or Burial: If you have a preference between a cremation or burial, it’s important to make that clear. If you desire a burial, then you may consider designating a family plot, a particular cemetery, or listing any burial rites you would like completed.
Location: If you would like your service to be held in a specific place (a church, a park, your home, etc.), it’s important to let your loved ones know. If you would like your ashes spread in a particular location, you should mention that in your will as well.
Creating a will is an essential step in planning for the future and ensuring that your wishes are respected after your passing. It provides peace of mind for both you and your loved ones, knowing that your assets, guardianship decisions, and personal wishes will be honored. Remember, your will should be clear, up-to-date, and legally binding, which is why consulting with an estate planning attorney can be a smart move. By taking the time to prepare your will, you ensure that your legacy is handled with care and that your loved ones are taken care of, even in your absence.