It may not sound
enticing, but creating a will puts power in your hands.
According to the global analytics firm Gallup, only about 44% of
Americans have created a will. This finding may not surprise you. After all, no
one wants to be reminded of their mortality or dwell on what might happen upon
their death, so writing a last will and testament is seldom prioritized on the
to-do list of a Millennial or Gen Xer. What may surprise you, though, is the
statistic cited by personal finance website The Balance: around 35% of Americans
aged 65 and older lack wills.1,2
A will is an instrument of power. By creating one, you gain control over the
distribution of your assets. If you die without one, the state decides what
becomes of your property, with no regard to your priorities.
A will is a legal document by which an individual or a couple (known as
“testator”) identifies their wishes regarding the distribution of their assets
after death. A will can typically be broken down into four parts:
*Executors: Most wills begin by naming an executor. Executors are
responsible for carrying out the wishes outlined in a will. This involves
assessing the value of the estate, gathering the assets, paying inheritance tax
and other debts (if necessary), and distributing assets among beneficiaries. It
is recommended that you name an alternate executor in case your first choice is
unable to fulfill the obligation. Some families name multiple children as
co-executors, with the intention of thwarting sibling discord, but this can
introduce a logistical headache, as all the executors must act unanimously.2,3
*Guardians: A will allows you to designate a guardian for your minor
children. The designated guardian you appoint must be able to assume the
responsibility. For many people, this is the most important part of a will. If
you die without naming a guardian, the courts will decide who takes care of
your children.
*Gifts: This section enables you to identify people or organizations to whom you
wish to give gifts of money or specific possessions, such as jewelry or a car.
You can also specify conditional gifts, such as a sum of money to a young
daughter, but only when she reaches a certain age.
*Estate: Your estate encompasses everything you own, including real property,
financial investments, cash, and personal possessions. Once you have identified
specific gifts you would like to distribute, you can apportion the rest of your
estate in equal shares among your heirs, or you can split it into percentages.
For example, you may decide to give 45% each to two children and the remaining
10% to your sibling.
A do-it-yourself will may be acceptable,
but it may not be advisable. The law
does not require a will to be drawn up by a professional, so you could create
your own will, with or without using a template. If you make a mistake,
however, you will not be around to correct it. When you draft a will, consider
enlisting the help of a legal, tax, or financial professional who could offer
you additional insight, especially if you have a large estate or a complex
family situation.
Remember, a will puts power in your hands.
You have worked hard to create a
legacy for your loved ones. You deserve to decide how that legacy is sustained.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
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are not illustrative of any particular investment.
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Citations.
1 - https://news.gallup.com/poll/191651/majority-not.aspx
[4/24/18]
2 - https://www.thebalance.com/wills-4073967 [4/24/18]
3 - https://www.nolo.com/legal-encyclopedia/naming-more-one-executor.html
[12/3/18]
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