Posts Tagged ‘Will’

Do I Need a Will?

Monday, December 8th, 2008

More than half of American adults do not have wills. What is more disturbing to me is that many of those individuals are Jesus followers. Sometimes, I think we are so focused on preparing for heaven, that they miss being good stewards/managers here on earth. I believe one of the responsibilities of a steward or manager is to alleviate family stress by preparing a will. What are the potential consequences of not planning for the disposition of your estate? The following answers might explain why you and your family might be better off drawing up a will. 

What happens if I don’t have a will? 

If you don’t have a will, your estate (all your assets) will end up in probate court and important decisions will then be out of your and your family’s hands. This is an absolute headache! Normally, you name an executor, a trusted friend or family member who is responsible for determining taxes, assets, bills, and debts to be paid. Without a will, the court becomes executor and your estate is divided under state laws. 

What are the important components of a will?
 
As a rule, according to attorneys, a will is broken up into two parts. Specified property, such as amounts of money, real estate and stocks that are left to a designated beneficiary. The residue is everything else, or everything not specifically defined, and will normally go to the primary beneficiary of the estate, usually spouse, children or both. Only property in your name at the time of your death can be passed to your heirs. 

How can I provide for minor children?
 
If you have minor children, you should be sure to name a trusted relative or friend as the guardian who will be responsible for the “person and property” of the minors. Tonia and I have already secured the consent of friends who would become the guardian of our children if something were to happen to us. Our will reflects this agreement. 

How often should I update my will?

Whenever there is a major change in the tax laws, or if there is a change in your family or your family’s finances, you should reflect that in your will.  

How much should I pay to have my will drawn?
 
This really depends on the complexity of the estate. The process of drawing up a will can range between $50 and $5,000 or more depending on how complicated it is. There is will software available, where it walks you through the will process step by step. It is convenient, but I would still advise you to consult with an attorney.
 
Leave a legacy, not stress, for those you love by taking time to prepare and order your will and other important documents (insurance, stocks, mutual funds, annuity and all other important account numbers, etc.) Store these documents in a fireproof safe or a safety deposit box at the bank, so that, if something happens to you, your family will know where to go to retrieve all your important documents. A resource workbook that I have recommended to people is If Something Happens to Me. I have listed this resource under Helpful Books and Software on sidebar. 
May God bless you as you prepare in life and death for his glory and your family’s benefit. 

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