Let’s face it, no one really wants to think about the end of their life. But for seniors, dealing with this reality becomes more imperative, especially when it comes to disbursing an estate and having your final wishes carried out. Creating a last will and testament, more simply known as “a will”, allows us to outline who receives our assets after we are gone. Sadly, a loved one dying without a will can cause arguments and divisions in the family, and allows the state to step in and determine how your assets are to be allocated.

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Drawing up a will gives you complete and sole discretion over any decisions regarding your belongings – such as automobiles, family heirlooms, business interests or investments. A will allows you to direct your affairs as you wish, even after you are gone.
Laws vary from state to state as to how the estate of someone without a will is handled. Typically, if an individual dies and leaves a spouse and children, the assets will be allocated between the surviving spouse and kids. If an individual is single with no children, the state is likely to make final decisions as to which of your blood relatives will inherit which parts of your estate.

Important Functions of a Last Will and Testament

  • The creation of a will is vital for people with minor children, because wills are the best and most effective way to assign the guardianship of minors.
  • A will is also helpful even for those who have a trust. A trust is a legal instrument that allows an individual to assign conditions on how assets are distributed after they die, as well as minimize gift and estate taxes. But those with a trust still need a will, as not all assets are covered by the trust. A trust deals with specific holdings such as life insurance or real property, but not the totality of your estate.
  • A revocable living trust allows an individual to include the majority of their assets, but a “pour-over” will is still required. This type of will allows you to name a guardian for your children, as well as guarantee that all the assets you meant to put into the trust are there even if you do not re-title them before death.
  • For those who are interested in giving to charity upon death, a will permits an individual to direct assets in that direction; be it an institution or an organization.

Updating Your Will

Creating a will is a necessary first step. But wills should not be drawn up and put on a shelf. There are many life events which may cause your will to change – and therefore it is a good habit to look over your will once a year.

Expert Tip: Set aside one day a year to review insurance policies, wills, investments and legal documents. This will allow you to keep on top of all of your important papers and make sure everything in updated if necessary – without trying to remember which documents you looked at, and when.

You will want to update your will based upon these changes:

  • Relationships – You may have married or divorced; or perhaps you added a new child to the family. While we don’t like to think about it, there may also have been a falling out with a beneficiary, or maybe one of your beneficiaries has passed away themselves. If you have minor children, are the people you have named as guardians still able to take care of them?
  • Affiliations – You may have joined a new church or gotten into a new volunteer organization that you would like to include.
  • Assets – You should look at the totality of your assets. This may include cash in the bank, investments in your portfolio, as well as valuable heirlooms or cherished personal items you would like to pass down to your family. Has the value of these assets grown or decreased? Do you need to adjust allocations of assets?
  • Location – If you’ve moved to a new part of the county, check with a local attorney at your new home to be sure the laws of your new state still apply to what you have drawn up. Estate laws vary from state to state, and you want to make sure your intentions are honored.
  • Taxes – Federal and state tax laws are in a state of constant flux. You should check with an attorney or estate planner on a regular basis to make sure that your will is in line with your original desires and intentions.

A Quick Checklist

The following should make you revise your will:

  • Birth or adoption of a child/grandchild
  • Marriage/divorce
  • Death of someone named in your will
  • Children reaching the age of majority
  • Changes to your executor, guardians, trustees
  • Adding a charitable organization
  • An increase or decrease in the value of your holdings and estate
  • A new business venture
  • Changes in federal or state tax laws
  • Reaching an age that you will begin taking distributions from your retirement plan
  • Relocation

This blog is not meant to replace qualified financial or legal advice. Please consult with an attorney or financial planner regarding your will and any other legal estate matters.

At A Banyan Residence, we provide comprehensive adult living solutions, from assisted living to memory and respite care. If you are in The Villages and are looking for a vibrant, professional and caring residence for you or a loved one, call us today.