Passing on Assets

Families today tend to be blended, containing spouses, ex-spouses, children, step-children, and adopted children. Members of blended families—or any family, really—should take the time to draft a will to ensure their wishes are followed after they die. While individuals can write a will on their own, most attorneys and financial advisors recommend getting the help of an attorney to draft a will to ensure all required details are covered. Individuals should also consider preparing a durable power of attorney for health and financial reasons. Parents should also name a guardian for minor children.

Some assets pass outside the probate process and will not be included in a will. These non-probate assess pass directly to the designated beneficiary or joint owner. These assets include life insurance proceeds, stocks or bonds held in beneficiary form, property transferred to a living trust, bank accounts or investments held in joint accounts with rights of survivorship, bank accounts or investments with a designated beneficiary, and money in a pension plan, IRA, 401(k), or other retirement plan with a named beneficiary.

Once an individual has created a will, it is imperative that he update that will if any major life change occurs—like marriage, birth, divorce, death, or a move to a different state. The individual should store the will in a safe place that is accessible to others and should consider giving a copy of the will to the personal representative.

See Marcia Brixey, Tell Your Family You Love Them—Write a Will, Forbes, Mar. 30, 2012.  

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.