August is National Make-a-Will Month. Here are a few reminders from HBC’s Trust & Estates team about why it’s a good idea to make a will – at any time of the year.
Determine who will receive your property.
The most common and simple reason to make a will is to decide who will get your property when you die. Without a will (or other plan, like a revocable living trust), your state laws determine how your property will be distributed, which may not align with your goals. Or, even if your wishes mainly align with state law, there may be a specific asset or portion of your estate you would like distributed to a more remote family member, a friend, or a charitable organization.
Designate an executor.
After you die, someone will need to wind up your affairs. You can use your will to nominate an executor (personal representative, in Colorado) to serve in this role. Without a will, an individual will be appointed in accordance with state law.
Name a guardian to care for your minor children.
If you have minor children and you want to name who will care for them, this is a compelling reason to execute a will (or at least an Appointment of Guardian) so as not to leave this decision up to state law/a court.
Provide guardrails for your children’s access to your financial assets. Without a will, if you are not survived by a spouse, and your children are minors, the court will appoint a conservator to manage the assets until a minor child reaches age 21, at which time they will receive full control of and access to those assets. And if your children are already 21, they will receive your estate assets directly from the outset. A will allows you to be intentional about who (referred to as a trustee) should manage the assets while your children are young, and be thoughtful about what ages and to what extent your children may be mature enough to begin directly accessing those assets in the future.
Provide for your pet(s).
Many of us treat our pets like family, but in many states they are simply viewed as property. You can use your will to designate a trusted caretaker for your pet and also direct money to that person to help them financially care for your pet. Pet trusts may even be appropriate in limited circumstances.
Makes a difficult time less difficult.
By spelling out exactly how you would like your estate handled when you die, you can avoid conflicts and have peace of mind that your wishes will be honored. Making a will can prevent additional grief for your loved ones during an already emotional time.
Once you make a will, make sure you update it as your life circumstances change, for example a new baby, death of a loved one, or a divorce. Remember that a typewritten will is only valid in Colorado if it is signed by you in the presence of two witnesses or a notary (and ideally both)!
HBC provides a wide range of estate planning and trust and estate administration services, giving clients peace of mind and providing guidance for families. If you need help getting started, give us a call https://www.hbcboulder.com/wills-trusts-estates