Writing a Comprehensive Will: A Step-by-Step Guide

Creating a will is something one often procrastinates about, assuming there’s plenty of time to do so. It can be overwhelming to think about, and you may not know how to go about it, or how costly it could be.

Contrary to popular belief, it's not just for the elderly or the wealthy. If you own a home or any other property, have a career, have savings or investments (including work retirement savings plans), or have children or other dependents, you need a will.

If you don't already have an estate plan, the Trust Team at Crews Bank
would be happy to meet with you to discuss the process.

Now, let’s get started.

Basic Requirements for a Valid Will

• Must be in Writing: Check your state’s requirements as some states will not accept handwritten or oral wills; however, a typed will is valid in every state.
• Must be Signed and Dated by the Testator: The person creating the will must sign and date it. This process is best guided by an attorney in their office to ensure its validity.
• Two Witnesses Must Also Sign: Witnesses must be over 18 years old and cannot be beneficiaries of the will. The staff at the attorney’s office will serve as witnesses and there will be a notary present.

Steps to Create a Comprehensive Will

List of All Assets on an Inventory

• Financial Assets: Savings, retirement accounts, investments (including stocks, UITs (Unit Investment Trusts), REITs (Real Estate Investment Trusts), bonds, ETFs (Exchange Traded Funds), and mutual funds).
• Physical Assets: Real estate, vehicles, jewelry, and heirlooms.
• Insurance Policies and Annuities: Be sure to have beneficiaries designated and current on each policy.
• Digital Assets: Online accounts, such as social media, online banking, e-businesses and photo sites.

Name Beneficiaries

• Be aware that beneficiaries named on accounts like checking, savings and retirement accounts like a 401k or IRA will override those named in a will or revocable trust.
• Ensure all accounts and wills are consistently updated.
• Jointly owned property, like a home or bank account, bypasses probate and does not require a successor, so long as the joint owner outlives you.

Designate Guardians

• For minor children, appoint guardians in your will. If the guardian is not an immediate family member, explain in your will the reasoning for choosing this guardian, to help the court understand your decision. Name a separate person or trust company to handle the money left for the children’s care.
• For pets, include them in your will by creating a pet clause in your will appointing a reliable caregiver or animal non-profit. You may want to consider leaving the caregiver the funds to care for the pet during its lifetime.

Gather Necessary Documents

• Birth and death certificates
• Marriage licenses and divorce decrees
• Mortgage information
• Insurance policy details
• Bank account information
• Investment portfolio statements
• Funeral plans and burial plot information
• Contact information for your lawyer, insurance agent, CPA, banker, financial advisor, trust officer, and employer.

Name a Personal Representative

• Often a family member, but a bank’s trust division can also serve as Personal Representative to administer your will through the Probate process.
• Personal Representatives are entitled to a fee set by state statute for their services, which are typically covered by the estate.
• Consider compensating a family member who serves as your Personal Representative with a gift from the estate instead of having them paid a fee. This approach can help them save on taxes for their significant time commitment.

Update Your Will as Needed
Review and update your will following major life events such as marriages, divorces, births, adoptions, changes in wealth, and deaths.

The Bottom Line

Creating a will might seem daunting, but it’s crucial for protecting your loved ones and ensuring your wishes are honored. By following these steps and seeking professional advice, you can create a comprehensive and legally sound will. Start today to secure peace of mind for tomorrow.

If you have a will you would like to have reviewed, the Trust & Wealth Team at Crews Bank & Trust would be happy to schedule a free review with you.

Note to the reader: Every state has its own rules as to how a will is validated and executed. Please check with a professional in your state before assuming your will is valid.