An important document for estate planning is a will.To distribute your assets is one of the functions it has.Writing your own will doesn't have to be very difficult or complicated if your estate is small.
Step 1: A list of things to do.
To distribute assets, plan for minor children, and pay debts are the three purposes of a will.You should give yourself some time to think about each, even if you don't need a will.Your circumstances could change.Even if you don't have assets now, you could in the future.You may have children after you draft the will.
Step 2: It is necessary to meet the age requirement.
A person needs to be at least 18 years old to make a valid will in most states.Check the requirements of your state if you are under 18.
Step 3: Pick out your assets.
Transferring assets is the primary purpose of a will.If you don't have a will, those assets will pass to your heirs according to state law.You should have a list of both things and money.Walk around your house to draft a list of assets.Vehicles, the house itself, art, and jewelry are objects that people would want.A list of liquid assets should be drafted.Liquid assets include checking accounts, cash deposits, and savings bonds.Some assets may be transferred outside of the court.Even if you don't have a will, your spouse will be the sole owner of the property once you die.
Step 4: You should review the laws of your state.
Your state's laws can affect how your assets are distributed after your death.You can review your state's laws by searching online or by contacting an attorney.Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are community property states.Property in these states can be either community property or separate property.Half of your community property can be given away, but the other half is your spouse's.Some assets can be transferred without a will.Some states allow you to transfer your residence to your heirs.The number of witnesses you need is determined by state law.Some require three, while others require two.Make sure your will is valid by having the right number of witnesses.
Step 5: Financial instruments should be checked.
Some assets have been designated for beneficiaries.You probably appointed a beneficiary if you opened a retirement account or purchased life insurance.This designation is more important than what you have in the will.The assets won't need to be distributed through a will.Don't forget about these assets when you decide who gets what.You should review who you named as the beneficiary on each policy.You can contact the life insurance company if you need to update the beneficiary.
Step 6: It is a good idea to have your property assessed.
You don't know how much your possessions are worth.You should have a professional appraisal done.How much each asset is worth is easy to reference.
Step 7: List all your debts.
The personal representative will pay your debts out of your estate.You can get a good idea of the size of your estate by listing your debts.You can include funeral expenses in your calculation of debts.Other debts include state and federal taxes, medical expenses, and credit card debt.Adding the value of your assets and subtracting uninsured debts can be used to determine your net worth.A friend or family member can help you sort through your debts.This will be a good test to see who has interest in dealing with someone else's finances.
Step 8: Choose who you want to help.
Determine who you should leave each asset to by removing your list of assets.Specific and general bequests are possible.A bequest leaves a piece of property to an individual.Specific requests include "I leave my 1965 Chevrolet Corvette to my son, Charles Kennedy."A gift of $25,000 to a friend is a general bequest because the money could come from many different sources.Ask your heirs if they want sentimental pieces of property.You should include it in the will if they do.You don't have to leave every piece of property to a specific beneficiary.You can name beneficiaries for the remainder after making specific bequests.
Step 9: Name the person who will take care of the property.
The estate will be administered by the personal representative.She will pay off debts, distribute assets, defend the estate and pay taxes.You should think about who you choose.Since the finances of the estate will be handled by the executor, you should pick someone with a good record of financial management.It is possible to avoid naming a family member.A professional is preferable when there are competing groups in your family.The professional should not be in the middle of things.An attorney or a bank may be able to handle larger estates.For estates worth less than half a million dollars, a family member may suffice.
Step 10: A guardian is needed for your children.
If you die, you can appoint a guardian for your minor children.A conservator can look after your children's assets.To make sure that they are willing to accept that responsibility, talk to them.If you and your spouse die, you should appoint a guardian to raise your children.Consider their values, lifestyle and religious beliefs, as well as how comfortable your child already is with the person, and whether or not your children would have to move far away from other family to live with them.If you die, your spouse will take care of the children.If your spouse remarries and has more children, then you may want to consider leaving some of your assets to the children.Discuss these possibilities with your spouse.
Step 11: Name the person who is in charge of assets.
Minor children can't take assets until they are 18.The guardian may be named as the conservator.
Step 12: Title the document.
A simple title will make anyone who reads it understand its significance.Something like "Will of John Doe" will suffice.
Step 13: Do you know who you are?
Let us know your name and location."I, John, a resident of California, Alameda County, declare that this is my will."If you believe that there will eventually be some confusion about your identity, you can add additional identifying information, such as your birth date, social security number, or a more specific address.
Step 14: Make a revocation of previous wills.
This provision clearly states that this document is your will and that no earlier will, codicil, or other document will be used.I have previously made wills and codicils.If you have never made a will before, include this provision.The revocation of previous wills helps prevent confusion.
Step 15: You should give your marital status.
If you are married, you should identify your spouse."I am married to Jane Doe."State as much if you are single.I'm a single man.
Step 16: Specific gifts are made.
A specific gift is a gift of a piece of property.If the intended beneficiary dies before you do, you can name an alternative.I leave my stamp collection to Dave Smith.Sally Johnson will inherit the property if Dave Smith does not survive me.If you specify what source the money is to be drawn from, you can leave money as a specific gift.For example, if you have a Wells Fargo account, you can leave $5,000 or $200 in it.The gift is called a general gift if you don't specify the source.If your heirs want sentimental pieces of property, ask them.It should be included in the will if they do.
Step 17: General gifts are made.
General gifts are gifts of money from a source.I leave $5,000 to Dave Smith.Specific gifts are more important than general gifts.Your gifts are made first.If you don't have enough assets left in your estate, general gifts will not be made.
Step 18: You can make a gift to your residuary estate.
After your general and specific gifts have been made, the residuary estate is anything left over.This could include property that you acquired after you made your will.I left my residuary estate to my wife.If Jane does not survive me, I leave my residuary estate to my two children, Sam and Jim.
Step 19: Name the person who will take care of the property.
Pick an alternate if the named person is unwilling or unable to take the responsibility.I named Jenny Jones to serve as my administrator.Steven Clark will serve as my executor if Jenny Jones is unwilling or unable to do so.The details of the payment should be specified.The executor will be paid at a rate of $50 per hour.
Step 20: The powers of the executor should be specified.
All distributions of gifts have to be made before the authority to manage your estate can be given.In order to file a petition in court for the administration of the state, you should specify that your executor has the power to do so."If the state has jurisdiction over my will, I direct my executor to take all actions legally permissible to have the will done as simply and as free of court supervision as possible, including filing a petition in the appropriate court for the independent administration of my estate."
Step 21: How will your debts and expenses be paid?
You can specify what assets you want to use to pay your debts.If you don't specify a source, your debts will be paid from your residuary estate and gifts to others.All debts and expenses owed by my estate should be paid using my account at Cudahy Savings Bank.
Step 22: How will taxes be paid?
Estate or inheritance taxes may be due upon your death.You can specify the source of the taxes from which they will be paid.All estate and inheritance taxes must be paid using an account at the Central Branch of the Independence Bank.A complicated area of the law is estate and gift taxes.You may be exempt from taxes if you have modest assets.If you have a lot of assets, you should consult with a tax professional.
Step 23: There should be a guardian for minor children.
If the other parent dies, your children will need a guardian to care for them and raise them.If Jane does not survive me, I will name Sally and Donald Johnson as my children's guardian.
Step 24: The "No-Contest" clause should be added.
The clause discourages anyone who receives a gift under your will from challenging the will in court in order to get a larger share of your estate.If a beneficiary unsuccessfully contests this will or any of its provisions, any share or interest in my estate given to them will be revoked and I will dispose of it as if the beneficiary had not survived me.The no-contest clause will not be enforced by some states.It is a good idea to research your state's law.
Step 25: You can use a severability clause.
The rest of the document will remain in effect even if some parts of it are not valid."If any provision of this will is held to be invalid, that will not affect any other provision that can be given effect without the invalid provision."" ref> http://www.nolo.com/legal-encyclopedia/sample-ll.html
Step 26: A signature block should be added.
You need a place to sign.The signature block should include your name, date, and declaration that you are making a will.The testator signed his name to the document on the 12th day of August.I declare that I will sign and execute the instrument as my last will and act as a free and voluntary act.I declare that I am of the age of majority and legally able to make a will.The signature is _______________.
Step 27: There should be another block for your witnesses.
Some states require three witnesses, while others only require two.The witnesses' personal information and signatures should be in the signature block.In most states, your witnesses are adults and not beneficiaries."We, the witnesses, sign our names to the document and declare that the testator willingly signed and executed this document as his last will."In the presence of the testator and each other, we sign this will as witnesses.The testator is of the age of majority or otherwise legally allowed to make a will, and is under no undue influence.We declare under penalty of perjury that the foregoing is true and correct this 12th day of August, 2015, at Santa Ana, California.Print your name, address, and state if you are the first witness.
Step 28: Hire an attorney.
If you have drafted your will, consider hiring an attorney to review it.It's worth it to pay a professional to make sure your will is as good as it can be, because mistakes can cost families a lot of money in legal fees and taxes.Contact your local bar association to inquire about pro bono or reduced-fee legal representation.To get a free consultation, meet with attorneys.
Step 29: You can find a will template.
You can draft a will if you can't afford a lawyer.A template is needed for your state.Some forms, such as fill-in-the-blank forms and statutory wills, do not come with clear instructions.Better options for streamlining the process are a will book or CD.The forms come with instructions that are specific to each state.Will work with software.An interview is included in the software that you download.The will can be tailored to your needs in the interview.Will software allows you to revisit the will and make changes at no cost.There are online will programs.The interview helps tailor the will to your needs.
Step 30: You should consult a tax attorney or estate planning professional.
If you have significant assets, your estate and beneficiaries may have to pay taxes.A comprehensive estate plan can include trusts, advance medical directives, and the re-titling of property to avoid transfer taxes.If your estate is modest, you should consider consulting an estate planning or tax professional to make sure that your wishes are carried out upon your death.
Step 31: You should have your will signed.
It's not necessary to have your will notarized in some states.Your will can be used as evidence in court.You can get your will notarized by signing it and having your witnesses sign it in the presence of a notary.Bring a valid form of identification, such as a driver's license or passport, to verify your identity, and have your witnesses do the same.
Step 32:
You can find a notary public at the bank.If you are a bank customer, most banks don't charge a fee for notary services.You can use the bank's service for a small fee if you are not a bank customer.
Step 33: It's important to keep your will safe.
If you want to make sure someone knows how to access your will, place it in a fireproof safe.It's not very useful to have a will that goes missing or is destroyed.
Step 34: As necessary, update your will.
If you have a child, get married, or get divorced, make changes to your will.If you want to disinherit a beneficiary, you should periodically review your will.