How to Make a Will

Let's face it, it's never pleasant to think about preparing for your death. Unfortunately, not enough Americans do--about half die without a will. Not having a will means the courts distribute your property according to state laws. Protect your family members and assets with a will, and eliminate the stress your loved ones may face if they have to handle your finances without one.

Instructions

Difficulty: Moderate

1. Consult with an estate-planning attorney to see if you need a simple will or a living trust (read 243 Create a Living Trust). You can write your own, but it may be more easily contested if a disgruntled family member wants to fight it.
2. Check out software such as Nolo Press's Willmaker (nolo.com). In addition to wills, it provides everything necessary to make living trusts, health care directives and financial powers of attorney. (It also tells you when you need professional help.)
3. Organize, organize, organize. Read 295 Make Your Final Arrangements and start working through the details. Outline your objectives, inventory your assets, estimate your outstanding debts, and prepare a list of family members and other beneficiaries. Clearly state everyone's relationship to you in the will. Keep in mind that you can address items not specifically mentioned in the will with a catchall phrase that states, "I give the remainder of my estate to (name of beneficiary)." Otherwise these items will be distributed in accordance to state law.
4. Include the following elements in your will:
5. Name a guardian for your children. A surviving parent usually assumes the role of sole guardian, but if you are a single parent or if your spouse, parents or family members will not be able to care for your children, name a guardian. He or she must be at least 18 years old.
6. Name an executor to oversee the distribution of your assets as stipulated in your will. Choose a family member, a trusted friend or an attorney. A trust company named as executor can keep your will and execute your wishes after your death.
7. Update your will when necessary. A change in marital status, the birth of a child or moving to a new state should prompt you to review your will. After drawing up any new will, destroy the old one.
8. Consider a living will. This lets your loved ones know what type of care you wish to receive in the event that you become terminally ill. It kicks in when you can no longer express your wishes yourself. Give your family members a signed copy.

Tips & Warnings

• The number of witnesses required varies by state. A witness should not be a beneficiary on the will.
• Be aware that some states seal your safe-deposit box upon death. You can make legal arrangements with a lawyer to restrict the sealing process while you're still alive. But if not, the state can step in while your assets are in probate court. Make sure your loved ones know where to find the will. Leave a copy of it with a note indicating where the original is located (with your attorney).
• Executors pay valid creditors and taxes; notify the Social Security Administration and other agencies and companies of the death; cancel credit cards and subscriptions; and distribute assets according to the will.
• Get ready to pay Uncle Sam. Federal estate taxes are generally due when the net taxable estate is worth more than $850,000 (escalating to $1 million by 2006). Reduce your income (and potential estate tax) by giving gifts during your lifetime. You can also purchase life-insurance policies to pay taxes. Discuss details with an attorney.