Basic Will Preparation Guide
All of us have goals for ourselves and our family. Do you want to leave them to chance or circumstance? Of course not.
Basic Will Preparation Guide
We can make plans now which can affect the goals that we have and how they are realized during our lifetime and beyond. The basic component for our planning is a will. Unfortunately, many people die without a will. This leaves reaching our goals in the hands of the individual states in which we reside. Will preparation does not have to be complicated. Information in this brochure will assist you in meeting with your attorney in order to keep your goals a reality.
Your Last Will and Testament
Writing a will should be as normal as planning an insurance program or a savings schedule. Because death is a normal part of life, preparing for it should not create anxiety. Your will is one of the most important documents you will ever sign. It alone speaks with authority after your death. It is a final expression of your love for family.
What is a Will?
A will is a written document in which a person states how possessions and property are to be distributed after death. It also names the person who will manage your estate. It should accomplish two things: • Distribute property according to your wishes. • Distribute property as economically as possible. A will takes effect only upon death. As long as you live, it does not transfer or give to others any rights to your property.
Who May Make A Will?
Almost every adult may, and should, make a will. Most states require that the testator: • Be old enough. Eighteen is the minimum age. • Be rational enough to realize what one is doing, to know what one owns and to have some plan for its distribution.
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Why Should You Have A Will?
Your property will go to those you want to have it. There is no other way for you to have this assurance. Friction and arguments will be lessened. The potential for large legal fees and court costs can be minimized. The bulk of the estate will then go to the heirs. The estate will probably be settled more promptly. You can name an executor/executrix to manage your estate. It will then be someone in whom you have confidence. Choose someone who possesses the ability to manage financial affairs. This may be your spouse, but whoever you name can be made familiar with your wishes before death. Don’t ever “surprise” someone by naming them Executor without their knowledge. Persons with children can name a guardian to care for their children and to manage their affairs in case they die simultaneously. Often couples will make this a reciprocal agreement, naming another couple with whom they are friends and who also have minor children. Executors can be named without bond. Bonds for court-appointed administrators can be costly, depleting the estate of funds needed for care of loved ones or for bequests made in the will. A will is the best way for you to remember your college, church or any charitable cause with a gift after your death.
Who Should Prepare A Will?
You may legally draw your own will. A handwritten will (holographic) is legal, but it may be costly and unwise. An attorney who is experienced in wills and estate planning can advise you properly and can put the will in language that says what you intend. After your death you cannot explain your intent. The attorney will be familiar with the laws of your state. An attorney’s assistance is of vital importance. Discuss the fee with your attorney. Cost will be determined by the time and effort required. The complexity of the will is also a factor. You can save time and may save money if you have all the necessary information available when you meet with the attorney.
When Should A Will Be Changed?
Your will should be changed when any circumstances of life change. When you marry or have children – when there is a death of a relative – or when there is a divorce, you should examine your will to see if it meets your new circumstances. When your legal residence changes to another state – when your financial situation changes greatly – and when tax laws are revised, your will probably requires some changes. Your will should be reviewed periodically and then changed to reflect the current situation. It may be accomplished by having a new will drawn or by the addition of a codicil. Never write in changes or scratch out words of an existing will.
What Happens If There Is No Will?
If there is no will, property will be disposed of according to the laws of your state. Someone will be appointed by the court to administer your estate. Someone will be appointed guardian of minor children. A bond will be required. It is possible that your wishes for the distribution of your property will be negated. A properly drawn will is the best way to ensure your desires will be satisfied.
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What Happens If One Dies Without a Will?
It may surprise you, but you do have a will. The state has written a will for all who neglect or refuse to make their own. When you die without a will (or die “intestate”, as the law calls it), all your property will be distributed according to the laws of your state. You do not determine who gets your property – the inheritance statute does. The “State’s will” may not fit your wishes. It may even deny them. The law was written to do the most good for the most people. It may cause hardship for your loved ones. The law provides a rigid formula for distribution. It knows nothing about the personal needs and circumstances of your survivors. There will be lots of red tape and expense, and the state necessarily moves slowly. It doesn’t trust anyone and the law applies to everyone alike – good or bad, honest or deceitful. The law must anticipate and provide against every possible kind of human deceit.
Situations That Matter When You Have No Will
Guardianship
Situation: Both parents of minor children die simultaneously. What assurance do they have that the court will appoint a guardian that they would want? None. Generally the court will appoint next-of-kin, but it is not required. If there are two sets of grandparents, that raises an issue for an impersonal clerk of the court to resolve.
Expenses of Bonding
Whoever is named by the court administratrix/ administrator, (even your spouse) may be required to file an annual bond. Amount of bond is determined by a formula applied to the value of personal property. With a will you could specify they serve without bond.
Estate Too Small To Require A Will
If you own any property at all – car, furniture, equity in a house, savings – you would do well to have a will. The less you have, the better care you should take of it.
Personal Representative
Common Disaster
(Administratrix/Administrator) When there is no will, the court appoints a personal representative, who you do not know, to manage your estate.
Situation: In our mobile society, it is possible for a family to die in a common accident. A couple with no children is killed in an auto accident. They have no will. What happens to their estate? Solution: Intestate laws will govern each of the estates (husband and wife). The interaction of these two estates can be very complex. A will helps with the complexities of the estates.
Expenses of Probate
A will does not increase probate expenses. Rather, it frequently reduces expenses. The court must determine who the legal heirs are if there is no will and must rule on the will if there is one. So, your heirs must go to court in either case. Without a will, the court’s decision may be delayed. Red tape may be cut more readily if one has a will.
Surviving Spouse And Her/His Absolute Right To Net Estate
There is no such absolute right. The laws of the state will prevail.
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The following chart is according to North Carolina laws of Intestacy Succession. Please check the laws of your state to determine if there is a difference in the distribution of property.
Distribution of Property According to North Carolina Laws of Intestacy Succession
Survivor(s) Spouse and one child Distribution of Property They will each receive a one-half undivided interest in real estate. Spouse receives first $30,000 of personal property; the balance will be shared equally. Spouse receives one-third undivided interest in all real estate, children receive equal undivided interests in the remaining two thirds. Spouse receives first $30,000 of personal property; balance is divided one-third to spouse and two-thirds equally among the children. Spouse receives one-half undivided interest in real estate; parents receive one-half undivided interest. Spouse receives first $50,000 of personal property; balance is divided one-half to spouse and one-half to parents. All of net estate to spouse. Net estate divided evenly among children. Net estate to parents of decedent. Net estate divided equally among sisters and brothers and/or the lineal descendants of deceased sisters and brothers. Estate passes to the state of North Carolina to aid certain students enrolled in public institutions of higher learning in North Carolina.
Spouse and two or more children
Spouse and parents of the decedent no children
Spouse and sisters and brothers of decedent – no children or parents Children, parents, sisters and brothers – no spouse Parents, sisters and brothers – no spouse Sisters and brothers – no spouse
No heirs
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What to do before you see your lawyer
Preparing for Making a Will
Making a will is not a do-it-yourself project. To obtain a will, custom-made for you, consult your attorney. In the privacy of your home, determine your own desires for distribution of your estate. Write down your wishes. Then take these notes to your attorney and tell her or him what you want to do. Give her or him details of your estate, of your family situation and the causes you wish to remember in your will. This task is to make your personal wishes legal. Attorneys charge for their time and knowledge. The more time you can save your attorney, the less the cost should be. Take along all the basic information that will be needed, in written form, so you may spend less time in her or his office. But, inquire in advance about legal fees. It is a routine question you are expected to ask. The fee will certainly be less than the cost of not having a will.
The following outline will help you gather the needed information. Write it out. Inventory your estate. And then don’t delay. Put it in the hands of an attorney who is competent in the field of wills and estate planning.
Information Needed
1. 2. 3. 4. Full name and address of testatrix/testator (person making the will, female/male) Date of birth and marital status Name of spouse, if married Names of living relatives to be named in the will. Give birth dates of minor children. An attorney will need to know names of all children, even if a child is to be omitted from the will. The attorney will advise you of precautions needed in such an event. Specify relationship of relatives and give current address for each person named as a beneficiary. Provide names and addresses of others to be included in the will. List specific bequests to be made to each of those persons listed above. Describe the gift, the amount of money or percentage of the estate to each recipient. The will provides an opportunity to make a final gift to your favorite cause which will probably be substantially larger than that which is possible in life. If desired, an institution or cause can be named as recipient of all or a portion of that which you designate. In such an event, the full legal name and address of the organization should be available. Name the institution or cause(s) you wish to include in your will. Designate the amount or percentage of the estate or describe the gift. If all of your estate is not specifically designated in the above manner, then a residual beneficiary should be decided upon. Frequently, the largest portion of one’s estate will be distributed under this section of the will. Normally the distribution will be expressed in percentages. The cause(s) named in (7) above could well be the residual beneficiary. If minor children are living at the time of making a will, you should name a guardian for their care. If husband and wife wish the other to be guardian of their children, they should specifically name each other in the will. An alternate guardian should also be named. Appoint your executrix/executor. Husband and wife often name each other. Specify if they will serve without being bonded in administering your estate. Again an alternate should be named. Because there is always the possibility of a common disaster in which you, your spouse and your children could be killed simultaneously, a paragraph in the will can provide for the trust to be established with the proceeds of your estate, and the income can benefit: a) Immediately, an institution or cause(s) of your choice. b) Your parents or other family members for their lifetime, and then the institution or cause(s) in perpetuity.
5. 6. 7.
8. 9.
10. 11. 12.
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A Bequest Planning Guide
Meredith College gratefully accepts gifts for the benefit of the College whether made by cash, trust or bequest. Below you will find sample language to use when creating a bequest for Meredith. We hope these examples will be helpful to your attorney. Specific endowment agreements may be established at the same time the will is completed. Please contact the Office of Gift Planning for assistance.
Scholarship or Endowment Fund:
A gift through which you can honor the memory of someone you admire: I give, devise and bequeath to Meredith College, an educational institution incorporated under the laws of the state of North Carolina, located at 3800 Hillsborough Street, Raleigh, North Carolina 27607, [the sum of $_________/property equal in value to _________ percent of my residuary estate/real estate located at ___________________________ and more fully described on Exhibit A attached hereto/ _________ shares of ___________________ stock] to constitute a fund known as the __________________________ Scholarship. This fund will be invested by the Board of Trustees of Meredith College and the annual revenue thereof used to support the general educational purposes of the College in such a manner as the Trustees thereof may direct.
Designated Bequest:
A gift to be used for a specific purpose: (Please consult the College to be sure the designated bequest can be honored). I give, devise and bequeath to Meredith College, an educational institution incorporated under the laws of the state of North Carolina, located at 3800 Hillsborough Street, Raleigh, North Carolina 27607, [the sum of $_________/property equal in value to _________ percent of my residuary estate /real estate located at ____________________________and more fully described on Exhibit A attached hereto/ _________ shares of _________________ stock] to support the program at the College in such a manner as the Trustees thereof may direct.
General Bequest:
A sum of money, property, stocks or a percentage of your estate for unrestricted use: I give, devise and bequeath to Meredith College, an educational institution incorporated under the laws of the state of North Carolina, located at 3800 Hillsborough Street, Raleigh, North Carolina 27607, [the sum of $_________/property equal in value to _______ percent of my residuary estate /real estate located at ____________________________and more fully described on Exhibit A attached hereto/ _________ shares of _________________ stock] for its general educational purposes.
Contingency Bequest:
A gift to an alternate beneficiary in case your designated heirs have died: I give, devise and bequeath all the rest, residue and remainder of my property, wherever situated and of whatever nature (including any lapsed devises or bequests or other gifts made by this will which fail for any reason), collectively referred to herein as my residuary estate, to _________________if she/he survives me. If __________________________ does not survive me, I give, devise and bequeath my residuary estate to Meredith College, an educational institution incorporated under the laws of the state of North Carolina, located at 3800 Hillsborough Street, Raleigh, North Carolina 27607, for its general educational purposes.
Residuary Bequest:
Money or property left over after specific bequests have been made: All the rest, residue and remainder of my property, wherever situated and whatever nature (including any lapsed devises or bequests or other gifts made by this will which fail for any reason), I give, devise and bequeath to Meredith College, an educational institution incorporated under the laws of the state of North Carolina located at 3800 Hillsborough Street, Raleigh, North Carolina 27607, for its general educational purposes.
Thank you for considering Meredith College in your will. For more information, please contact: Harold L. West, CFRE, FLMI Senior Director of Gift Planning Meredith College 3800 Hillsborough Street Raleigh, North Carolina 27607-5298 (919) 760-8372 westh@meredith.edu www.meredith.edu
Neither the author nor the publisher of this publication is engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of an attorney or other professional should be obtained. The purpose of this publication is to provide accurate and authoritative information of a general character only.
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