What to Do When Writing a Will

A will is the single most important document in estate planning. Your will allows you to make final decisions about your estate. You can divide your estate as you wish, create trust funds and charitable endowments, and reduce the amount of inheritance tax your beneficiaries have to pay.

Given the importance of wills, you should consult with experts in estate planning. A carefully drawn up will clearly states who inherits your estate, how the estate is to be divided, and may even set a timeframe for inheritance. If your children are underage, your will should include guardianship information. Monetary inheritances can be placed in trust until children come of age.

While you choose who will benefit from your will, a poorly written will may leave your beneficiaries open to legal challenges. Don't try to write your will yourself: A financial consultantcan help make your will as clear as possible.

A will is not static. As your life unfolds you should periodically review your estate planning documents. This often means updating your will. Family events often precipitate such changes. Your plans for your estate may change radically if you marry or divorce or if births or deaths occur.

You may wish to add a charity to your list of beneficiaries. A charitable endowment can be a one-time donation or a trust fund that makes regular donations to the charity of your choice.

Inheritance tax can cost your beneficiaries large sums of money. A carefully written will can reduce the amount of inheritance tax due upon your death. Inheritance tax is governed by complicated laws that are confusing unless you're trained in estate planning. Ask a financial consultant for assistance in minimizing inheritance tax.

If you die without having made a will, your estate will be distributed by the State, applying arbitrary probate laws governing the shares to be given to immediate and more distant relatives.

In the event that you die without relatives and without writing a will, your entire estate becomes the property of the State. Even if family members do inherit under these circumstances, the value of your estate will have been reduced by the maximum amount of tax possible; tax that could have been avoided with proper planning. Getting advice from an estate planning specialist can help you avoid these unfortunate scenarios.