Planning for Your Will

An erroneous belief by many people is that they don't have enough assets to warrant making a will; only rich people need wills. If you are married or single, if you have children and relatives, you need a will. If you have charitable causes you want to help perpetuate, you need a will. If you own a home, a car or have a bank account, stocks or any other kind of property, you need a will.

It is essential that your will is prepared by an attorney and executed according to guidelines for the state in which you reside. For a will to be legal, it should be

•  in writing,

•  signed by the one creating the will,

•  acknowledged to be the will of the person who signs it, and

•  dated.

The signature of the one who creates the will must be witnessed, which requires people who are not beneficiaries witness the signature by also signing the will.

Make a List

Make a list of your things of value: real estate, life insurance policies, bank accounts, securities, bonds, mutual funds, significant items of personal property, mortgages, royalties. List everything that has value or means something special to you or someone else. You need to provide your attorney with a complete picture of your possessions.

Whom to Include in the Will

What you own is one part of the list work. Its distribution at your death is the other half. You need to make a list of individuals you want to remember in your estate plan and will. The list can include your spouse, children, parents, siblings, other family members, and friends.

List the institutions and organizations that you support now and wish to support after your death. What about First United Methodist Church, Van Alstyne? What about your college? What about the special charitable organizations you believe in and support? These types of institutions cannot receive anything from your estate unless you specifically name them in your will.

Match Your Possessions and Desires

In making your will, you want to match your assets, including both tangible and intangible property, with the individuals and organizations you desire to remember.

All bequests you desire to make should be identified. A child or your spouse may need an income for life, in which case your attorney might want to draft a testamentary trust to accomplish the bequest. Other desires and objectives may be accomplished by using arrangements such as trusts and annuities; these arrangements work well for bequests to your church and charitable organizations. Included in a will, these arrangements can benefit one or more individuals and your charitable interests at a future time.

Four Ways You Can Give

Four basic ways are available to give through your will. A bequest can be based upon a percentage of your estate. The most common method of giving through the will is a specific dollar amount, or specific personal property or real property. Following the designation of all bequests, a residue may remain; be certain to designate how the residue will be distributed.