Before You Write Your Will… Christopher Cogan, CCIM®, Richard T. Williams, III, CFA®, Aimee Cogan, CFP®, CIMA® & Scott Rockwell
Writing a Will is not as simple as it sounds. For most people, it requires important decisions on how to divide assets, who to select as an executor and beneficiaries, what to do about amounts owed by you and debts owed to you and how to adequately provide for children, among other considerations.
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reparing a Will is one of the most important steps you can take in managing your finances, yet for many people, it is something they would rather not face. However, if you die intestate (without a Will), state law will apply and determine how your assets are to be distributed. What’s more, if you are a single parent of minor children, the same
court will decide with whom your children will live. On the other hand, if you take the time to prepare a Will, you will be the one who determines how your property is distributed, who will be the guardian of your minor children and who will manage your estate when you are gone.
Drafting a Will Ideally, your Will should be drawn up by a lawyer, and you (and your heirs, if possible) should be familiar with its general form and contents. Although it is your legal right to do so, it is never a good idea to draft your own Will. You may not be aware of the statutory requirements that exist in your particular state, and some states may have different standards for witnessing a Will or require specific language that must be included in order for the Will to be valid. When meeting with a lawyer to draft your Will, make sure to bring the proper information, as outlined below: • List of assets. Include your real estate, bank and investment accounts; retirement accounts; and other valuable personal property. Do you have any belongings that hold sentimental value beyond their economic worth? Decide for each item whether you would like to leave it directly to one of your heirs or have it sold to increase the cash value of your estate. • List of debts. Include your credit cards, mortgages, home equity loans, car loans, student loans, personal debts and outstanding medical or other bills. Do you have enough cash in your accounts to cover these debts? If not, which assets would you like your executor to liquidate first to pay your creditors? Then list any debts owed to you by others. Do you want these debts to be extinguished at your death, or do you want your executor to collect them to add to the value of your estate?