4 Mistakes to Avoid When Making a Will
A last will and testament, commonly referred to as a “will,” is a crucial part of any estate plan. A will is a legal document that allows you to formally dictate your wishes for what should happen after you pass away, including who will benefit from your assets, who will act as your personal representative and, most importantly, who will take on the role of guardian for your minor children.
Though it may seem simple, I’ve seen many people come through my door with an existing will that doesn’t tick all the boxes. When creating and maintaining your will, there are a lot of considerations and it is easy to miss a detail here and there.
Here are the most common mistakes people make when it comes to wills:
- Choosing the wrong person to fill an important role. When creating a will, you choose people to fill several important roles. The personal representative (also known as the “executor”) is the person responsible for ensuring your wishes, as outlined in your will, are fulfilled after you pass away. The person you choose for this role should be responsible, detail oriented, and have your best interests in mind. Another crucial role is guardian for your minor children. This should be someone caring and nurturing who is willing and able to care for your children until they come of age. Some additional roles you will likely choose, though not as part of your will, are a healthcare power of attorney and durable power of attorney – both people (or you can choose one person for both roles) who will make decisions on your behalf should you become incapacitated and unable to do so for yourself.
- Not providing for the IRS. When it comes to tax considerations when estate planning, you may have heard of estate tax. For most people, this type of taxation will not be relevant; the State of Wisconsin does not levy an estate tax and federal state tax only kicks in for estates with a total value over a certain amount (as of 2020, the amount is $11.58 million per individual, $22.4 million per married couple). However, estate tax is not the only type of tax to consider when estate planning. Certain assets, like retirement savings and life insurance proceeds may be taxed. Questions? Talk to your estate planning attorney.
- Forgetting to update your will. A will is not a set-it-and-forget-it document. As your family grows and your life changes, your will should reflect your wishes as of the current moment. You may decide to change the person listed as your personal representative or guardian for your children based on things like age and ability to fulfill the duties of the role. You will also want to be sure to update your will anytime you make a major life change, such as buying a new home, getting married or divorced, or welcoming a new baby. In the event of your death, an outdated will can cause major issues for your family and other beneficiaries.
- Not hiring an experienced estate planning attorney. You may be tempted to use an online service to create your will in the hopes of saving some money. While these services might indeed be cheaper than working with an attorney, you may end up regretting the decision down the road. The mistakes above are easy to make when creating your estate plan without expert help, and your family may end up incurring extra cost and hassle in the event of your death. With the help of an experienced estate planning attorney, you can rest assured everything is correct in your will and that you have the right additional documentation to ensure your family’s future is protected.
I’m Paul Margerie, an experienced estate planning attorney with decades of experience helping local individuals and families plan for their future. I specialize in helping young families in Milwaukee, Wauwatosa, Brookfield, and surrounding communities start their estate planning journeys. Are you recently married? Expecting a new baby? Buying a home? It’s time to think about estate planning. Give me a call to get started today.
