August Is "Make a Will" Month

About the author: Lamar Watson, CFP®, is a Fee-Only Financial Advisor in the Washington, D.C., area who works with clients virtually across the country. Dream Financial Planning is a Fiduciary Financial Planning firm specifically designed to help individuals in their 30s and 40s take control of their finances and fulfill their dreams. Feel free to schedule a Free Consultation to learn how we use the DREAM Financial Planning Process ™ to help our clients achieve their goals. 

August is National “Make a Will” Month, and it’s a great annual reminder to update your will if needed and create a will if you don’t have one already. A will is an important estate-planning document that can help you transfer your assets with ease. Having a proper will can make the difference between a smooth transfer of assets and a probate nightmare.

Let’s learn more about what wills are, why you need one, and some tips on how to create or update your will during National “Make a Will” Month.

We have partnered with a leading Estate Planning platform to deliver Estate Planning documents for a fraction of the cost of working with an attorney. In conjunction with our partner, we'll provide a complete estate planning experience in a collaborative fashion. We'll be able to facilitate, create, visualize, maintain, and ultimately administer your Estate Plan.

Revocable Living Trust-Based Estate Plan

• Individual - $1,600
• Couple - $2,100

Will-Based Estate Plan

• Individual - $900
• Couple - $1,400

If you'd like to discuss cost-effective solutions to get your Estate Planning documents in place, feel free to send me an e-mail or schedule a free consultation.

What Issues Should I Consider When Establishing My Estate Plan?

Estate planning is a topic that is commonly ignored. After all, who likes to plan for what happens after they die? Most people have no Estate Plan in place and often don't know where to start.

This checklist will give you a better idea of what questions to ask when creating your estate plan and clarify what will happen to your assets after you're gone.

This checklist covers the key issues to consider when developing your Estate Plan, such as:

• Identifying the appropriate estate planning documents needed for your situation.
• Considering ways for your assets to avoid probate.
• Developing an equitable estate plan that is fair to all heirs involved.
• Understanding how specific accounts or assets may be affected after death.

What Is a Will?

A will, or a Last Will and Testament, is a legal document that outlines your intention for the distribution of your assets after your death. It is an integral part of a comprehensive estate plan and helps your loved ones avoid legal and financial loopholes and know what to do with your assets. These explicit instructions are essential and can help everyone avoid a lot of headaches.

Wills vs. Trusts

When you’re researching estate planning documents, you have likely come across both wills and trusts. While both documents can help dictate what you want to do with your assets when you’re gone, there is one main difference.

The primary difference between a will and a trust is that a trust takes effect as soon as it’s created and signed, while a will does so only after you pass away.¹ There are also two different types of trusts to consider: irrevocable and revocable.

• Irrevocable trusts are trusts that can’t be changed or canceled after they have been signed.
• Revocable trusts can be changed, and the grantor has the right to change the terms or even end the trust.

Another difference between wills and trusts are that a will requires probate to transfer items to beneficiaries, but trusts can avoid probate. In addition, wills are public record and trusts can remain private. Because a trust takes effect right when it’s created, it can be used if you become incapacitated and unable to make decisions independently.

Do You Need a Will?

We face so many financial obligations every day, so should creating a will be at the top of your list? Most financial experts say yes, you need a will. Even if you don’t have substantial assets to transfer, a will can still help your family feel more confident about your wishes. In addition to making the transfer of assets easier, here are a few benefits of having a will:²

• It allows you to distribute your property and protect your loved ones after you pass away.
• It can provide peace of mind to you and your family.
• You can plan for those in your care (e.g. naming a legal guardian for your children or pets).
• It may prevent family conflict.
• It can eliminate confusion over assets.
• It can help ensure that your assets go to the people you want to have them.
• It can help you build a lasting legacy.
• You can use your will to benefit charitable causes.

These are just a few of the many benefits of having a will. To celebrate National “Make a Will” Month, let’s look at how to create a will.

How to Create a Will

Creating a will can be a straightforward process, or it can involve the help of attorneys and financial advisors. Also, the process will depend on where you live because every state has different requirements for creating a will.

Generally, the first step in creating a will is to determine what you want to include. You should include instructions for passing along your assets after your death, including ownership and other instructions. You may consider working with an attorney to ensure that your will contains everything it needs.

Next, you will likely sign your will in front of two witnesses, and these two witnesses will also sign your will. Some states require a self-proving affidavit that you sign in front of a notary, other states require your will to be notarized, and some states don’t require any special self-proving documentation as long as you sign and witness your will correctly.²

Whether you have $10 worth of assets or $10 million, creating a will is a good idea to give your family more guidance after you pass. A will can help make the transfer of assets easier and give you and your family more peace of mind. Consider creating or updating your will this August for National “Make a Will” Month!

What Issues Should I Consider When Reviewing My Beneficiaries?

If you don't have Estate Planning documents, you should at least update your beneficiaries. Keeping track of one’s beneficiaries isn’t always an easy task. Relationships change over the years, and people often forget to review their beneficiaries in light of new planning goals. Furthermore, many people aren’t aware that their current beneficiary setup may not be as equitable or efficient as they had intended.

This checklist covers important factors you need to know when reviewing your beneficiaries, such as:

• Understanding whether your beneficiaries are up to date and in alignment with other important estate planning documents.
• Recognizing the differences in tax treatment for certain types of accounts and the effect that may have on one’s estate planning outcomes.

Being aware of the implications of naming a non-person beneficiary (e.g., trust, charity, one’s own estate, etc.), and how that may affect one’s estate planning goals.

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Tax preparation is now part of the ongoing financial planning program. This will be in addition to the Tax Report we already generate for clients and our work with the IRS Withholding Calculator to help prevent our clients from getting a surprise tax bill.

Estate Planning - If you're looking for a cost-effective solution to get your estate planning documents in place, we can help.

Revocable Living Trust-Based Estate Plan

• Individual - $1,600
• Couple - $2,100

Will-Based Estate Plan

• Individual - $900
• Couple - $1,400

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This service is an ideal fit for parents of high school juniors and seniors with a standardized test score (ACT/SAT) and a list of colleges they're considering. This is included as part of ongoing financial planning or as a stand-alone package. This service includes:

• A college affordability assessment
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I hope we get the opportunity to work together. If you'd like to see if any of these services are a good fit for you, feel free to schedule a free consultation or send me an e-mail.

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