Retirement And Wills

To will or not to will, Do's and Don'ts in making a will

First things first, you should have a will. Wills not only do the obvious: distribute wealth and possessions to loved ones; they also leave an impression on how carefully one has managed his or her estate especially for those left behind.

The following are things one should and should not do in making a will:

Do update your will

Everything changes. Possessions, money can increase or decrease. Estate tax laws change in a whim thanks to Congress. The IRS can just as well alter these laws depending on whose side they are on and how they interpret it. There are varying laws in each state. It is important to evaluate every major change in your life. Doing so could change your will for the better and your death a lot more peaceful.

Do name the correct executor

Executors should be ethical, honest, and efficient and be ready to give his or her service at the drop of a hat. Ensure that the potential executor has been properly briefed and that his or her consent has been received. It also helps to have one or two alternates. It is also suggested that one name an executor younger than yourself. The point is to lessen the chances of having an executor die before you do.

Do not name the same person as guardian and trustee

It helps to not name the person you entrust with your children with the same person you entrust with your money and finances. Having different people fulfill these varied responsibilities is important. It keeps the system in balance and each person doing the role he or she knows best what to do.

Do not leave too much for a spouse

Leaving money that is more than sufficient to your spouse is not a very good idea. It takes away wealth that your children should just as well have and you will not be able to monitor your finances if all of it is entrusted to your significant other. Depositing some of your financial wealth to a trust is one way to keep it growing.

Do not be too specific

Some families fight as to who gets the blender and who gets the kitchen sink. It is important to not be too detailed in your will as to who gets what. Being too specific could result in unnecessary and costly problems later on. It is advisable to entrust a group of your possessions to a person than listing down which item will go to whom. It saves time and is more efficient, reasonable and sensible.