For many people, preparing a will is one of those things ”I really should do.” But very often it never gets done. Roughly three out of four Americans die without a will, leaving guardianship and property up to local courts.
Quick tip
Often attorneys charge some combination of flat and hourly fees for will prepartion. If you decide to use an attorney, you can cut the hourly costs by going to your first meeting well prepared.
Who should have a will:
Every adult who owns anything of value or who has a spouse, children or who wants to have control over who inherits their estate.
Why:
Its basic functions are to designate a guardian for minor children, to specify precisely who is to inherit what, and to name a personal representative, or executor, who will see that the terms in your will are followed.
Example: If spouses die simultaneously with no will, the court appoints a guardian for minor children. That person is likely a relative, but the deceased parents have forfeited their rights to choose exactly whom.
Court proceedings can also take months and costs are applied from the estate.
Where to keep it:
The signed original should be kept in a place where it is safe against fire, theft, or other loss, readily retrievable by you and accessible to your survivors to gain immediate access to it upon your death.
Regular reviews: A will should be reviewed and, if necessary, updated every 3 to 5 years. Causes for updating can include the birth of a child or the acquisition of a significant amount of money or other valuable property. What happens if you die without a will: The function normally carried out by a will is carried out by local probate court in compliance with state law.
Do-it-yourself vs. attorneys
Many people can with the help of any number of books or computer programs on estate planning and will writing, prepare their own wills. However, the more complex the will, the greater the chance a do-it-yourselfer will make a mistake that could invalidate the document.
When to do your own will:
– If your assets are not large and varied
– If the provisions you intend to make in your will are fairly conventional
– If you have the time and patience to read and follow sometimes complicated instructions
When not to do your will:
– If you have unusual or extraodinary conditions to consider, such as multiple marriages, incompetent dependents, hostile divorce proceedings, court decrees or property settlements.
– If you wish to minimize taxation against your estate.
Cost:
In most areas of the U.S., a person can expect to spend a minimum of $75 to have a simple will prepared. In large metropolitan areas. The cost can run as high as $1,500 for a very complex will. As with most things, costs are generally higher in larger metropolitan areas.
Living will
20 percent of adult Americans have written a living will. It is a document that indicates your wish not to be kept alive by artificial means or heroic measures if you are suffering from a terminal condition and your death is imminent.
– How it differs from a standard will:
A living will is meant to be activated during your lifetime if needed. It deals only with medical treatment issues, not matters of property. A standard will provides for guardianship and disposition of assets after your death.
– Who can have one:
Anyone over age 18
– Who needes to be involved:
A lawyer need not be involved in the preparation of a living will so long as the document follows the proper formalities. If properly dated, signed and witnessed, even a handwritten living will will be given full force and effect. It is wise to discuss the instructions contained in your living will with your family and physician, so that your wishes are clearly understood by both. Both of these parties should also be given a copy of the document.
Where to obtain living will documents:
A living will and any related forms required by your state can be obtained from the Society for the Right to Die, 250 W. 57th St., New York, N.Y. 10107. Enclose a self-addressed stamped envelope and two 29-cent stamps with your request. Information also can be obtained from your state`s health department or department on aging. Books on how to write a living will, which contain forms, are available at some stores and libraries. It is important to note that formalities differ from state to state. Be sure your living will follows the format required by your state.
Sources: American Bar Association; Chicago Bar Association; ”Estate Planning and Will Writing Guide” (Hamilton Press); ”A Family Guide to Estate Planning” (Scribner 1983); ”Funeral Arrangements an Settling and Estate After Death,” ”Write Your Own Living Will” (Crown Planning).
Chicago Tribune: Vasin, Omer D., Steve Little and Annette Meade.
