My husband and I turned 60 this year and we are preparing to get our affairs in order as we look towards retirement.
According to the Life Insurance and Market Research Association 51% hang up their boots between the ages of 61 and 65. By age 75, 89% of Americans have left the labor force. My husband is in the first category and I’m in the second. I love working with the elderly and hope to continue working well into my 70’s. In January we met with our financial advisor and our estate attorney to make some long overdue updates to our legal documents.
Our Edward Jones Financial Advisor, Joellen Nelson believes in working closely with our CPA, attorney and other professionals so that we can determine the most appropriate financial strategy. During our meeting we were able to develop a financial strategy with tools and resources to help my husband and I reach our individual and combined retirement goals. Our yearly review helps us to prepare for unexpected events and expenses. My husband is the numbers guy and to me it seems like a foreign language. Thankfully our advisor was able to explain everything so that we both have a better understanding of our future.
The next stop was to our estate attorney, Melissa Shirey to update the will that we wrote over 30 years ago when the kids were young. Recently some situations came up with a member of our family that left us asking questions about what their wishes were in the event of a medical emergency. That’s when my husband and I decided that we needed to have everything spelled out for our own family before we had a medical emergency of our own. There are various decisions to make and it definitely opened up alot of discussion. Its not really a topic that one may want to review.
Top 10 Reasons to Have a Will
1) Decide how your estate will be distributed. A will is a legally-binding document that lets you determine how you would like your estate to be handled upon your death. If you die without a will, there is no guarantee that your intended desires will be carried out. Having a will helps minimize any family fights about your estate that
2) Decide who will take care of your minor children. A will allows you to make an informed decision about who should take care of your minor children. Absent a will, the court will take it upon itself to choose among family members or a state- appointed guardian. Having a will allows you to appoint the person you want to raise your children or, better, make sure it is not someone you do not want to raise your children.
3) To avoid a lengthy probate process. Contrary to common belief, all estates must go through the probate process, with or without a will. Having a will, however, speeds up the probate process and informs the court how you’d like your estate divided. Probate courts serve the purpose of “administering your estate”, and when you die without a will (known as dying “intestate”), the court will decide how to divide estate without your input, which can also cause long, unnecessary delays.
4) Minimize estate taxes. Another reason to have a will is because it allows you to minimize your estate taxes. The value of what you give away to family members or charity will reduce the value of your estate when it’s time to pay estate taxes.
5) Decide who will wind up the affairs of your estate. Executors make sure all your affairs are in order, including paying off bills, canceling your credit cards, and notifying the bank and other business establishments. Because executors play the biggest role in the administration of your estate, you’ll want to be sure to appoint someone who is honest, trustworthy, and organized (which may or may not always be a family member).
6) You can disinherit individuals who would otherwise stand to inherit. Most people do not realize they can disinherit individuals out of their will. Yes, you may wish to disinherit individuals who may otherwise inherit your estate if you die without a will. Because wills specifically outline how you would like your estate distributed, absent a will your estate may end up on the wrong hands or in the hands of someone you did not intend (such as an ex-spouse with whom you had a bitter divorce).
7) Make gifts and donations. The ability to make gifts is a good reason to have a will because it allows your legacy to live on and reflect your personal values and interests. In addition, gifts up to $13,000 are excluded from estate tax, so you’re also increasing the value of your estate for your heirs and beneficiaries to enjoy. Be sure to check the current laws for your year to learn the most up-to-date gift tax exclusions.
8) Avoid greater legal challenges. If you die without a will, part or all of your estate may pass to someone you did not intend. For example, one case involved the estate of a deceased son who was awarded over $1 million from a wrongful death lawsuit. When the son died, the son’s father – who had not been a part of his son’s life for over 32 years – stood to inherit the entire estate, leaving close relatives and siblings out of the picture!
9) Because you can change your mind if your life circumstances change. A good reason for having a will is that you can change it at any time while you’re still alive. Life changes, such as births, deaths, and divorce, can create situations where changing your will are necessary.
10) Because tomorrow is not promised. Procrastination and the unwillingness to accept death as part of life are common reasons for not having a will. Sometimes the realization that wills are necessary comes too late – such as when an unexpected death or disability occurs. To avoid the added stress on families during an already emotional time, it may be wise to meet with an estate planning lawyer to help you draw up a basic estate plan at the minimum, before it’s too late.