Writing A Will: Unpleasant But Necessary Task

It was 10 years ago that the New York graphic designer left home for work, happy in a relationship with his girlfriend. At lunchtime, his live-in partner was killed in an accident.

The designer who asked his name not be used to protect his privacy within days faced not only the loss of a loved one, but an added burden of accounting for her estate.

Like most folks in their 20s and 30s who figure they won’t die early and don’t own much anyway, the designer’s partner hadn’t bothered to prepare a will. Big mistake.

Like filing a tax return, writing a will isn’t the kind of job most people gladly face. But it’s one better faced than avoided.

At the very least, a last will and testament will help survivors locate proceeds from company pensions or 401(k) retirement plans that tend to mount untended over the years and bank accounts tucked away in credit unions or Christmas Clubs. And, of course, a will is a guide to divvying up money, mementos and possessions among family and friends.

There are several very good reasons for drawing up a will. For families, the most important is for parents to name a guardian and fiduciary trustee to manage the children’s inheritance in the event both parents die at once.

Without a will, a probate or surrogate court judge has final say about who cares for surviving children and manages their affairs. If there’s enough cash and other assets in an estate, a judge may also name a trustee, who collects a fee.

A will can also establish estate-planning techniques that limit the assets subject to federal and state taxes. That’s especially important for estates of $600,000 or greater value - the threshold at which federal taxes kick in.

To avoid the more common mistakes when drawing up a will, lawyers, financial planners and people say the process put them through the wringer offer the following tips:

For big estates, “the only way to benefit from tax-effective estate planning is to physically divide the property,” Muhlbaum said. Joint bank and brokerage accounts need to be separated and deeds re-drafted.

Make a will “self-serving,” meaning that witnesses all sign the will and affidavits at the same time with a notary present to swear the signatures are valid.

Keep the original will with a lawyer or the executor, and only one copy in a safe-deposit box. That way, the executor has the legal right to open the box without getting a costly and time-consuming court order.

Life insurance isn’t part of the estate unless it fails to name a beneficiary.

Revisit old wills. A will prepared in 1964 when husband and wife were healthy with minor children is not the right document for 1996.