Ten Warning Signs When Thinking About A Will

by Roger Ellison, CFP

1. The thought that you do not need a will.  If you own assets such as life insurance, a residence, retirement accounts, stock or other property a will could be very helpful to assure that your assets benefit the people and charities you wish. Failing to have a will often places great stress, anguish and unnecessary costs on those left behind; it’s like leaving a mess for someone else to clean up.
2. Thinking that the estate tax has been repealed.  The estate tax law has been changed significantly, some for the better, but the repeal is only a temporary, one-year occurrence in 2010. Odds are that will be changed again before we get to that time. Even in the highly unlikely chance the estate tax is eventually repealed, the need for a will is as strong as ever.
3. Putting it off.  There are no good excuses, particularly if life changes or ends unexpectedly. There are NO good excuses for putting it off. None.
4. An overwhelming desire to write the will yourself or to copy another’s will.  A holographic (handwritten will) is valid in Texas, but it is a potential invitation to disaster. Chance for legal error, misinterpretation and contest by disgruntled heirs is great. What made someone else’s will so good may be the same thing which makes it unsuitable for your circumstances. It’s in the details where the problems arise. Consult a qualified attorney.
5. Having a will prepared by an attorney not sufficiently versed in estate and probate law.  Few of us would ask or trust a podiatrist to perform brain surgery on the one we love the most. Because of their specialization in oil and gas lease work, an attorney may not have the training or experience to prepare a proper will for your circumstances. Seek someone well qualified, highly recommended and with whom you feel comfortable.
6. Buying a revocable living trust from a salesperson that comes to the door.  Often the cost is great – much higher than having your own attorney do the work – and their benefits are frequently exaggerated. Very few people need revocable living trusts instead of a will. Many sold are part of a scam. Ask for my article on the topic or contact the Better Business Bureau.
7. Feeling that you have to leave everything to the kids or treat all of them equally.  Leaving too much to heirs can damage them as much as a serious car wreck, sapping their ambition or encouraging irresponsible behavior. Treating two children equally, for example, may not be wise if one is a highly accomplished heart surgeon and another is a struggling missionary in Timbuktu. One of your children may be financially competent, while another is spendthrift in behavior and still another is disabled. Consider treating heirs fairly and lovingly, rather than equally.
8. Thinking that all gifts should wait until death.  Many gifts bring so much more joy to donor and recipient when made during life. Some gifts to heirs or charity are much more beneficial to the donor when made during life than when made through a will.
9. Assuming that you are going to have to live the rest of your life as if you are going to run out of money.  Some people may run out of money, but far too many people have unrealistic fears of dying penniless. Surprisingly, these unrealistic fears cross all economic lines, from very modest to enormous estates. Often, some of the simplest planning can provide a wonderful sense of mind that brings richness and peace to the later years of life.
10. There’s only one way.  Good planning can offer very attractive options to increasing income, avoiding taxes, providing needed management, increasing the benefit to heirs and providing a sense of well being. Charitable giving options may be particularly helpful.

Roger Ellison, Vice President of Planned Giving, at the West Texas Rehabilitation Center Foundation, is a Certified Financial Planner who provides gift and estate planning services on a no cost, no obligation basis. He may be reached at 325-223-6309 or roger@rogerellison.com