Making a Will: What You Need to Know

Setting up a will is not anyone’s idea of a fun time. Most of us don’t like to think about what will happen after we die. But setting up a will is an important part of preparing your financial future and requires you to think through a whole host of important matters to consider. It’s a legally binding document that helps distribute your assets and possessions after your death, and it can ensure that your legacy is established. If you want your wishes followed after you pass away, making a will is an important step. 

A will provides a foundation for how your assets will be taken care of after you’re gone. It’s a key part of thinking about the end of life, even if that’s a long time away. But how do you know that you need a will? How do you write a will? What should you consider when creating a will? And what are some important matters related to will preparation? Read on for our advice on the things to consider when making a will.

Who Needs a Will?

Basically, anyone who is over 18 and has a partner, children or a positive net worth should have their own individual will. (Yes, spouses often have separate wills, even if they look almost identical.) A will is particularly important if you have minor children, an array of assets – such as business holdings or a high net worth – or a more complicated line of inheritance (such as children from a previous relationship).

Why Do I Need a Will?

A will serves a variety of purposes, all of which center around giving you control over what happens after death. In your will, you can name who will be responsible for certain areas of your estate plan. Furthermore, you can decide who will receive your assets, bequeathing money, property and treasured items to people you love and causes you care about. 

How to Make a Will

An attorney can help you draft a will and identify the documents needed for will preparation. Ask friends and advisors for references or contact the local bar association for a list of attorneys who can assist you. 

Do a little homework before you write your will. Here are a few things to consider when creating a will:

Name a Guardian for Children Under 18

This may be the most crucial thing your will can do. You should carefully consider who you want to care for your children and ensure that the potential guardians are willing to take them in. Make sure to speak with the potential guardian ahead of time and be open to any questions they may have. If you don’t designate a caregiver for your minor children, the courts will have to step in and decide on your behalf — especially tricky if you’re a single parent or don’t have many family members.

Create a Trust for Your Minor Children

A Testamentary Trust is often added to a will by parents with minor children to ensure that the assets they pass on are guarded and used for the children’s health, education, living expenses and other support. In their will, parents are able to designate a person or entity they trust to manage their financial assets and look out for the best interests of their minor children. Some families designate the guardian named in their will so they will have access to funds to care for the children, but others name a guardian for their children and another person to oversee the trust, splitting the responsibility and the burden of care.

 Name a Caretaker for Your Pets

For many people, furry friends are just as much a part of the family as anybody else. You don’t want your beloved pets to be sent to a shelter, so discussing with your family who would take them after your death, and then designating that person in your will, allows you to have peace of mind. 

 Name an Executor of Your Estate 

Your executor is in charge of handling your affairs: paying off debts and taxes, closing accounts and managing your property and possessions. You want to choose someone who is responsible and organized — someone who you know will carry out your wishes. Naming them in your will gives them permission to take care of your affairs in accordance with your wishes.

Distribute Assets

A will allows you to determine who should receive anything you own that doesn’t have a beneficiary (such as a life insurance policy) or isn’t jointly owned (such as a business). In your will, you can give sentimental items to specific people (it may be wise to discuss this with them ahead of time) and make the distribution of your assets easier for loved ones. You avoid some potential conflicts among your loved ones because your will makes it clear what your intentions and desires were. It also allows you to designate charities to receive an end-of-life gift that will continue your legacy.

If you die without making a will, the state will assign an administrator to distribute your assets and make decisions that would have been laid out in a will. This administrator will be tied to the laws of the state, and their decisions may not align with your wishes or your family’s wishes. The cost of this process may also eat away at the inheritance you leave for your loved ones.

When to Update a Will

Even after you’ve made a will, you can’t cross it off your list forever. A will is not a one-and-done task. Most life changes (such as marriages, divorces, moves, large asset sales, deaths, births and so on) require you to make changes to your will. Even if nothing significant in your life has changed, you should regularly review your will to ensure it matches your wishes.

Where to Store a Will

If you keep your will in a safe deposit box, ensure that others have access to the box so they can retrieve the document without you. Otherwise, you can keep your will in a fireproof and waterproof safe in your home or with someone you trust, such as an attorney.

We Are Here for You

When you’re thinking about how to establish your legacy and prepare for your loved ones in the future, Farm Bureau is here to help. If you have questions about providing for your beneficiaries through life insurance, talk with an agent. We can also help you prepare for a meeting with your attorney so you’re ready to hit the ground running when you walk into their office.