Why is a Will important? Who should be your beneficiaries?

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​A Last Will and Testament is a legally binding document where you disclose how you would like your estate to be handled upon your death. Not only can a Last Will and Testament legally protect your spouse, children, and assets, it can also spell out exactly how you would like things handled after your death.  Here are a few reasons why you should have a Last Will and Testament:

1. You decide how your estate will be distributed. If you die without a Last Will and Testament, there is no guarantee that your intended desires will be fulfilled.  Having a Last Will and Testament helps eliminate family conflicts about the division of your estate and also determines the “who, what, and when” of your estate. 
2. You decide who will take care of your minor children.  Absent a Last Will and Testament, the court will take it upon itself to choose among family members or a state-appointed guardian.  Having a Last Will and Testament allows you to appoint the person, guardian and or custodian you want to raise your children or, better, make sure it is not someone you do not want to raise your children.
3. Minimize estate taxes and avoid a lengthy probate process.  Ensuring that your Last Will and Testament coordinates with your beneficiary designations is vital to accomplish your estate planning goals, so we recommend coordination with non-probate assets and your Last Will and Testament.
4. Make gifts and donations.  The ability to make gifts is a good reason to have a Last Will and Testament because it allows your legacy to live on, reflect your personal values and interests, and to further your causes upon your death.
5. Because tomorrow is not promised.  Procrastination and the unwillingness to accept death as part of life are common reasons for not having a Last Will and Testament.  Sometimes the realization that a Last Will and Testament is necessary comes too late, such as when someone passes unexpectedly or if a disability occurs.  To avoid the added stress on family during an already emotional time, it may be wise to meet with an estate planning attorney to help you draw up a basic estate plan, before it’s too late. 

​This brings us to why beneficiaries are so important.  Beneficiary designations direct assets not subject to your Last Will and Testament to certain individuals/charities that you indicate.  Here are a few tips about beneficiary designations:

1. Remember to name beneficiaries on all documents where designations are permitted (ex. insurance policies, annuity contracts, IRAs, other retirement accounts, etc.).  When you first set up your estate plan, review all of the designations you previously made and align them with your plan.
2. Name both primary and contingent beneficiaries.  It’s a good practice to name a “back up” or contingent beneficiary in case the primary beneficiary dies before you.
3. Update your beneficiaries.  You should review your beneficiaries yearly or on major life events such as, marriage, deaths, births, and divorces.