What Are the Basics of a Will?
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Creating a Will can be a daunting task but it is necessary to protect your family and loved ones. An intestate, or someone who dies without a Will, has their estate distributed according to Texas state law. Typically, these items will go to a surviving spouse or children (however things get complicated when there are step-children), or if none, to other family members. However, these laws may not reflect a person’s wishes and may cause strife for the family. A Will ensures any last wishes are carried out and helps prevent division among family members.
If you are anxious about creating a Will because you don’t know what to expect, you’re not alone. Alison Grant, Attorney at Law, is Lewisville, Texas’ trusted estate planning attorney, helping people from all walks carry out their wishes long after passing. She works closely with each of her clients, ensuring they understand everything going on throughout the process and empowering them to make informed decisions to protect themselves and their families. As part of her commitment to better serving her community and aiding in destroying the anxiety that surrounds writing a Will, she and her team have created this guide on the basics of a Will. Here is what you need to know:
What Is a Will and What Does It Do?
A Will is a legal document that provides instructions for the distribution of certain property owned by the individual at the time of their death. The Will gives the individual the power to distribute property in any manner they choose. It provides them with the ability to name an executor, the person responsible for carrying out their wishes and settling the estate after they pass.
The Will also allows the individual to appoint guardians for any minor children or dependants, as well as provide financial support for them or other family members who may need it.
What Assets Should Be Included in a Will?
A will covers any assets in an individual’s name alone. This includes the following:
Money: One of the most important parts of any will is the financial piece. A Will tells loved ones what money is set aside for any outstanding debts, including that for end-of-life care, medical or funeral expenses, and any probate costs. A Will may designate who will receive various bank accounts, including checking, savings, and any money market accounts.
Real Estate: Any homes or pieces of land may be included in a Will to ensure clarity regarding the management and ownership of these properties after death. Wills may include clear directions on how to pay off any mortgages for these properties as well. Also consider the following:
- Are there any life insurance proceeds that should go to the mortgage?
- Would it make more financial sense to have the property/properties sold?
- Do you have a joint tenancy of the property?
Investments: Any investments, such as stocks and bonds, as well as any mutual funds not in a retirement plan, such as an IRA or 401(k), may be included in the Will. A Will may designate who will receive each investment account. This ensures there is no question about who should get which investments.
Businesses: If you own a small business or a large corporation, your Will may include these. The Will can clearly define the succession plan to avoid confusion and stress for any business partners or employees. Designating an individual to take over business ventures will set up a smooth transition for ownership.
Additional Assets to Include: Smaller assets, generally those of sentimental value, such as jewelry, may also be included in a Will along with the names of the family or friends you want those items to go to. These items include:
- Jewelry
- Cars
- Family heirlooms
- Art collections
Should I Include Guardianship Information?
While guardianship is not considered an asset, many individuals create a Will to ensure those most vulnerable in their lives are taken care of. A Will can include information regarding guardianship for any pets, minors, or other individuals you are responsible for. This ensures these individuals will be properly cared for and protected when you can no longer do so yourself.
What Should Not Be Included in My Will?
Many assets should be included in a will, but some should never be, including:
- Property listed in a living trust
- Joint tenancy property
- Retirement plans
- Life insurance proceeds
- Payable on death and transfer on death accounts
- Stocks and bonds with a beneficiary designation
How Do I Create a Will?
Creating a Will should be done alongside a trusted estate planning attorney. They can help guide you through the steps of creating a solid Will.
Assessing Your Assets:
First, you and your attorney may make a list of everything you own that has value, such as real estate, cash, jewelry, vehicles, etc. These are considered probate assets and will be governed by the directions included in your Will.
Next, you and your attorney will list everything that has a co-owner, beneficiary, or trust, such as a joint bank account, retirement plan, or life insurance policy. These will not go into your Will as a Will doesn’t govern what happens to these non-probate assets, though it’s important to identify these assets.
Finally, you and your attorney will list out all of your debts and financial liabilities. These include mortgages on property, car loans, or credit card debts. These will have to be paid off from your estate before any beneficiaries can receive their inheritance. A plan should be set in place for how these debts will be handled once you pass.
Determining Goals and Needs for Your Will
The point of a Will is to ensure the plan for your estate is carried out after you pass, instead of allowing the state to handle it. To ensure your wishes are properly carried out, you will need to answer the following questions:
- Who do you want to inherit your assets?
- How do you want your assets distributed?
- Who do you want to be the executor of your estate?
- Who do you want to name as the guardian for minor children, dependents, or pets?
- Do you need to create a trust for any of your beneficiaries?
- Do you have specific wishes for your funeral, burial, or memorial service?
Meet With a Financial Team
Once you know how you want the estate to be distributed, have your assets and liabilities reviewed by trusted financial advisors. This ensures there is a solid plan for your finances that includes how debts and taxes will be paid off.
Creating the Legal Will
Finally, you will need to create the Will. An estate planning attorney is the only way to ensure a Will is valid and enforceable. They will work with you to draft a Will that follows your wishes to the tee while adhering to Texas state law. They will also help you avoid common errors, such as accidental omissions of assets, that could cause issues later for your family.
Once the Will is ready, it will need to be signed in front of two witnesses. These witnesses will not be beneficiaries or related to you. They will have to sign the Will as well. Once the Will is signed, store the original in a safe place, whether this is a safe, or bank deposit box. Your attorney’s office will keep a copy. You may want to give a copy of your Will to the Executor of your estate, or ensure the Executor knows where your Will is and how it can be accessed.
Can My Will Be Updated After It Is Signed?
Yes! A Will can be changed and should be updated every three to five years or after any major life events. Major life events include:
- Marriage or remarriage
- Divorce
- A new inheritance
- Purchase or sale of large assets or property
- Having more children
- Moving out of state
- Birth of grandchildren
- Death of a beneficiary or executor
- Planning a large international trip
Will and Estate Planning Attorney in Lewisville, Texas
While writing a Will can feel overwhelming, it is more manageable when you have a knowledgeable attorney making sure nothing gets missed and everything is done properly. Alison Grant, Attorney at Law, has been faithfully providing the individuals of Lewisville, Texas with all of their estate planning needs. She has become renowned for her personable approach, excellent communication and customer service, and wealth of experience. If you are looking to write a Will to ensure that your loved ones are well taken care of after you pass, then Alison Grant, Attorney at Law, is here to help! Contact our team today for more information or to schedule a consultation.
