Here’s what you need to know about creating a will – CNBC
The coronavirus may have you thinking more about your mortality. After all, what if?
Pandemic or not, it's important to consider what would happen to your bank accounts, your home, your belongings i.e., everything you own and, perhaps, your dependents, if you're no longer here.
In other words, you should prepare a will if you don't already have one.
In every jurisdiction, if there isn't a valid will, assets will pass on to your heirs by law, who may or may not be who you would have provided for in a will," said Samantha Weyrauch Davis, an estate planning attorney and director with the law firm Hall Estill in Tulsa, Oklahoma. "It also lets you name a guardian for children."
If you pass away with no will called dying intestate a state court decides who gets your assets and, if you have children, who will care for them.
This means that if you have an unmarried partner or a favorite charity but no will, your assets may not end up with them. Typically, the courts will pass on assets to your closest blood relatives, even if that wouldn't have been your first choice.
A will is just one piece of an "estate plan." An estate just refers to what you own your financial accounts, possessions and any real estate. Putting a plan in place for those assets helps ensure that upon your death, your wishes are carried out and that family squabbles don't evolve into destroyed relationships.
In other words, it's partly about making things easier for your loved ones during an already-difficult time.
Here's what else you should consider if you want to prepare a will.
A will is a document that lets you relay who gets what when you pass away. You can get as specific as you want (i.e., you leave a certain family heirloom to a particular person) or keep it more general (i.e., you want your surviving spouse to get everything).
However, there are some assets that pass outside of the will, including retirement accounts such as 401(k) plans and individual retirement accounts, as well as life insurance policies.
This means the person named as a beneficiary on those accounts will generally receive the money no matter what your will says. (Be aware that 401(k) plans require your current spouse to be the beneficiary unless they legally agree otherwise).
Regular bank accounts, too, can have beneficiaries listed on a payable-on-death form, also known as a POD, which your bank can supply.
If no beneficiary is listed on those non-will items or the beneficiary has already passed away, the assets automatically go into probate. That's the process by which all of your debt is paid off and then the remaining assets are distributed to heirs. The process can last several months to a year or more, depending where you are and what's involved in handling your estate.
If you own a home, be sure to find out how it should be titled to ensure it ends up with the person (or people) you want it to, because the laws can vary from state to state. Moreover, there can be other considerations when it comes to how a house is titled, including protection from potential creditors or for tax reasons later when the home is sold.
You can turn to an estate planning attorney in your local area to ensure familiarity with state laws or use an online option. However, be aware that not all of the web-based alternatives will necessarily reflect the specifics of your state's law.
"There's risk in doing it that way," Davis said. "Those forms or software may not be compliant with your local law, so look at the fine print."
If an online option ends up being appropriate for your situation, you may be able to find a form to download for free. Software will-making options can run about $60 or more, depending on what else is included. To set up an estate plan with an attorney could run several hundred dollars to more than $1,000, depending on the complexity of your situation.
Also, you'll need to have a witness and/or notary sign it and make the document official, depending on the state where you live.TheAmerican College of Trust and Estate Counsel's websiteoffers a guide to laws and accommodations in every state if in-person meetings are not permitted due to the pandemic.
More from Personal Finance:Here's how unpaid debt is handled when a person diesThese are the top 10 cities for summer staycationsHere are jobs created by the coronavirus pandemic
As part of the will-making process, you'll need to pick an executor of your will (sometimes called a personal representative).
This can be a big job, experts say. Things such as liquidating accounts, ensuring your assets go to the proper beneficiaries, paying any debts not discharged (i.e., taxes owed to the IRS), and even selling your home could be among the duties undertaken by the executor.
In other words, just because you've known your best friend since elementary school doesn't mean handling the challenge of being an executor is up their alley.
Typically, estate planning also includes preparing a few other legal documents. This includes an advance health-care directive, also known as a living will.
This document outlines your wishes if you become incapacitated due to illness or injury.
Say you are on life support. Instead of a loved one making the agonizing decision whether to end all life-saving measures, your wishes would be specified in a legal record.
It's also worth assigning powers of attorney. If you become incapacitated, the people you grant powers of attorney will handle your medical and financial affairs if you cannot.
Often, the person who is given this responsibility when it comes to your health care is different from whom you would name to handle your financial affairs.
As with choosing an executor, make sure whoever you hand the financial reins to is trustworthy and smart.
"I tell my clients it's really important to carefully consider the individuals you name," Davis said. "You want to make sure they have the ability, skill set, time and desire to make such decisions and do these sorts of things."
While it can be hard to imagine your own death, picture your family having to search through drawers for your original will, documents regarding your bank accounts and other assets, and maybe even your Social Security number.
The best way to avoid forcing them to deal with that task on top of mourning is to leave an organized list of information that the will's executor will need to settle your estate, experts say. Be sure this includes passwords so your online accounts can be accessed.
If you want your kids to receive money but don't want to give a young adult or one prone to poor money management unfettered access to a sudden windfall, you can consider creating a trust to be the beneficiary of a particular asset.
A trust holds assets on behalf of your beneficiary or beneficiaries, and is a legal entity dictated by the documents creating it. If you go that route, the assets go into the trust instead of directly to your heirs. They can only receive money according to how (or when) you've stipulated in the trust documents.
Subscribe to CNBC on YouTube.
Excerpt from:
Here's what you need to know about creating a will - CNBC
- Clark Center for Geospatial Analytics to offer free version of TerrSet/IDRISI software starting Dec. 2 - Geo Week News - September 3rd, 2024 [September 3rd, 2024]
- Best video editing apps of 2024: Top tools for Android, iPhone, and iPad - TechRadar - September 3rd, 2024 [September 3rd, 2024]
- Samsung extends free software upgrades to millions of Smart TV owners are YOU one of them? - GB News - September 3rd, 2024 [September 3rd, 2024]
- This open-source software can double the volume of Windows laptops. For free - The Indian Express - August 22nd, 2024 [August 22nd, 2024]
- European Commission cuts funding support for Free Software projects - European Digital Rights (EDRi) - August 22nd, 2024 [August 22nd, 2024]
- Hyundai partners with TCSO to combat car thefts with free software patch - KEYE TV CBS Austin - August 22nd, 2024 [August 22nd, 2024]
- Free and Discounted Software for University of Oklahoma Students - The University of Oklahoma - August 16th, 2024 [August 16th, 2024]
- GitHub is the Best Place for Free and Open Source Software - How-To Geek - August 16th, 2024 [August 16th, 2024]
- The Usual Suspects Xenia, a free Waldorf microwave II/XT emulation using the DSP56300 plugin - Synth Anatomy - August 16th, 2024 [August 16th, 2024]
- Best free Adobe Illustrator alternatives of 2024 - TechRadar - June 24th, 2024 [June 24th, 2024]
- This is how to view the long-established free software 'CrystalDiskInfo' that shows the health status and SMART ... - GIGAZINE - June 24th, 2024 [June 24th, 2024]
- The best antivirus software 2024: Free and paid options - Tom's Guide - June 20th, 2024 [June 20th, 2024]
- Best free text-to-speech software of 2024 - TechRadar - May 20th, 2024 [May 20th, 2024]
- Best free word processor of 2024 - TechRadar - May 20th, 2024 [May 20th, 2024]
- Best free antivirus in 2024 - TechRadar - May 20th, 2024 [May 20th, 2024]
- 'Open-Shell Menu' is an open source software that returns the Windows start menu to its previous appearance for free - GIGAZINE - May 20th, 2024 [May 20th, 2024]
- Avast Free Antivirus: Testing its features and learning about the six layers of protection - TechSpot - May 20th, 2024 [May 20th, 2024]
- The best Android antivirus apps in 2024 - Tom's Guide - May 3rd, 2024 [May 3rd, 2024]
- Best photo editing software in 2024 - Tom's Guide - May 3rd, 2024 [May 3rd, 2024]
- BYD recalls 16666 Seagull EVs in China due to software issue that may prevent reverse camera image from displaying - CnEVPost - May 3rd, 2024 [May 3rd, 2024]
- KIA installs free anti-theft software this weekend in St. Louis area - KSDK.com - April 28th, 2024 [April 28th, 2024]
- Best survey tool of 2024 - TechRadar - April 28th, 2024 [April 28th, 2024]
- Grand Rapids Police and Hyundai Offer Free Anti-Theft Software Upgrades Amid Vehicle Theft Wave - Hoodline - April 26th, 2024 [April 26th, 2024]
- Blueprint Software Systems Announces Free Trial for RPA Analytics Solution - PR Web - April 26th, 2024 [April 26th, 2024]
- Houston Police, Hyundai to host free anti-theft security event for vehicle owners - Houston Public Media - April 26th, 2024 [April 26th, 2024]
- Hyundai providing free anti-theft software installation this weekend at Greenspoint Mall - KHOU.com - April 20th, 2024 [April 20th, 2024]
- Ubuntu Studio in new LTS beta; still the easiest creative Linux distro - CDM Create Digital Music - Create Digital Music - April 20th, 2024 [April 20th, 2024]
- How to get free help with income tax prep, or free software | Business | postandcourier.com - The Post and Courier - February 23rd, 2024 [February 23rd, 2024]
- Best encryption software of 2024 - TechRadar - February 23rd, 2024 [February 23rd, 2024]
- The best free VPN in 2024 - TechRadar - February 23rd, 2024 [February 23rd, 2024]
- AI imaging software generates a gallery of stereotypes, says Univ. of ... - GeekWire - November 28th, 2023 [November 28th, 2023]
- Roku's free update that makes it easier to find new shows and ... - TechRadar - November 28th, 2023 [November 28th, 2023]
- How To Find Alternatives To ChatGPT Forbes Advisor UK - Forbes - November 28th, 2023 [November 28th, 2023]
- How To Find Alternatives To ChatGPT Forbes Advisor Australia - Forbes - November 28th, 2023 [November 28th, 2023]
- Assassin's Creed Syndicate is now free to keep on Ubisoft Connect - OC3D - November 28th, 2023 [November 28th, 2023]
- Google Confirms Its Schedule for Disabling Third-Party Cookies in ... - Slashdot - November 28th, 2023 [November 28th, 2023]
- Tata Consultancy Services Ordered To Cough Up $210 Million In ... - Slashdot - November 28th, 2023 [November 28th, 2023]
- Meta Knowingly Collected Data on Pre-Teens, Unredacted ... - Slashdot - November 28th, 2023 [November 28th, 2023]
- US, Britain, Other Countries Ink Agreement To Make AI 'Secure by ... - Slashdot - November 28th, 2023 [November 28th, 2023]
- Plex Users Fear New Feature Will Leak Porn Habits To Their ... - Slashdot - November 28th, 2023 [November 28th, 2023]
- This free software converts drone videos into 2D maps in minutes! - DroneDJ - November 14th, 2023 [November 14th, 2023]
- How 'Hour of Code' Will Teach Students About Issues with AI - Slashdot - November 14th, 2023 [November 14th, 2023]
- Nothing is Bringing iMessage To Its Android Phone - Slashdot - November 14th, 2023 [November 14th, 2023]
- How To Build A WordPress Website In 9 Steps - Forbes - November 1st, 2023 [November 1st, 2023]
- Best Adobe Acrobat free alternatives - PC Guide - For The Latest PC Hardware & Tech News - November 1st, 2023 [November 1st, 2023]
- Monday.com Pricing and Plans 2023 Forbes Advisor Canada - Forbes - November 1st, 2023 [November 1st, 2023]
- PIRG Petitions Microsoft To Extend the Life of Windows 10 - Slashdot - November 1st, 2023 [November 1st, 2023]
- Kidsoft launches free calculator to simplify "Free Kindy" fee working - The Sector - November 1st, 2023 [November 1st, 2023]
- Drugmakers Are Set To Pay 23andMe Millions To Access Consumer ... - Slashdot - November 1st, 2023 [November 1st, 2023]
- Biden Signs Executive Order To Oversee and Invest in AI - Slashdot - November 1st, 2023 [November 1st, 2023]
- Meta's Next AI Attack on OpenAI: Free Code-Generating Software - The Information - August 18th, 2023 [August 18th, 2023]
- Millions of Samsung Galaxy S23 users just got a sweet free software ... - Yahoo Life - August 18th, 2023 [August 18th, 2023]
- Red Hat unlikely to be standard for enterprise Linux in future, says ... - iTWire - August 18th, 2023 [August 18th, 2023]
- Observing Basics: Astrophotography without a scope | Astronomy.com - Astronomy Magazine - August 18th, 2023 [August 18th, 2023]
- Chattanooga trucking and logistics companies are among the fastest ... - Chattanooga Times Free Press - August 18th, 2023 [August 18th, 2023]
- How Google is Planning To Beat OpenAI - Slashdot - August 18th, 2023 [August 18th, 2023]
- Tesla Says It Will Build New 'First of Its Kind' Data Centers - Slashdot - August 18th, 2023 [August 18th, 2023]
- Bank of Ireland IT Blunder Allows Customers To Withdraw More ... - Slashdot - August 18th, 2023 [August 18th, 2023]
- LK-99 Isn't a Superconductor - How Science Sleuths Solved the ... - Slashdot - August 18th, 2023 [August 18th, 2023]
- Mayor Bowser Announces Hyundai Anti-Theft Mobile Clinic | mayormb - Executive Office of the Mayor - July 30th, 2023 [July 30th, 2023]
- Responding to Data Breach at Contractor | CMS - CMS - July 30th, 2023 [July 30th, 2023]
- Five Auburn Alumni Receive Award for Work to Advance Tax Prep ... - CPAPracticeAdvisor.com - July 30th, 2023 [July 30th, 2023]
- Codeiums Varun Mohan and Jeff Wang on Unleashing the Power of ... - Nvidia - July 30th, 2023 [July 30th, 2023]
- Banner Health provides free concussion baseline testing for every ... - Queen Creek Sun Times - July 30th, 2023 [July 30th, 2023]
- Hugging Face, GitHub and More Unite To Defend Open Source in ... - Slashdot - July 30th, 2023 [July 30th, 2023]
- Lindsey Graham and Elizabeth Warren: When It Comes To Big Tech ... - Slashdot - July 30th, 2023 [July 30th, 2023]
- Best Dogecoin Casinos & Gambling Sites Ranked by DOGE Bonuses, Games, and More - The Hudson Reporter - July 2nd, 2023 [July 2nd, 2023]
- GCC Steering Committee Announces a Code of Conduct - Slashdot - July 2nd, 2023 [July 2nd, 2023]
- AI Predicts Diseases, Advancing Toward HIV Cure, Acquisitions ... - Bio-IT World - July 2nd, 2023 [July 2nd, 2023]
- WISeKey upgrades its WISeID digital identity and privacy platform - Help Net Security - July 2nd, 2023 [July 2nd, 2023]
- FBI Forms National Database To Track and Prevent 'Swatting' - Slashdot - July 2nd, 2023 [July 2nd, 2023]
- BYU Library offers free software classes - The Daily Universe - Universe.byu.edu - June 16th, 2023 [June 16th, 2023]
- Free Streaming Software Market to Witness an Outstanding Growth ... - The Bowman Extra - June 16th, 2023 [June 16th, 2023]
- How to build a virtual studio for free with free plugins and music ... - MusicRadar - June 16th, 2023 [June 16th, 2023]
- Battlebit Remastered Price - Is it free? - PC Guide - For The Latest PC Hardware & Tech News - June 16th, 2023 [June 16th, 2023]
- How to Install the iPadOS 17 Developer Beta on Your iPad for Free - MacRumors - June 16th, 2023 [June 16th, 2023]
- Human Resources Software: 4 HR Tools for Small Businesses - CO by the U.S. Chamber of Commerce - June 16th, 2023 [June 16th, 2023]
- YouTube Tells Open-Source Privacy Software 'Invidious' to Shut Down - Slashdot - June 16th, 2023 [June 16th, 2023]
- Arctic Could Be Sea Ice-Free in the Summer by the 2030s - Slashdot - June 16th, 2023 [June 16th, 2023]
- The IRS Will Test Out Its Own Free Tax Prep Software in 2024 - Money - May 20th, 2023 [May 20th, 2023]