Understanding Testamentary Wills

A testamentary will, or a "Last Will and Testament," is an official list designating the transference of your money, property, or valuables to those whom you name as heirs. This type of will also allows you to designate a guardian for your minor children. For these reasons, and as a way to help your family avoid painful legal procedures during an emotionally stressful time, consider drafting your testamentary will if you have not done so already. It's a quick, easy, and valuable investment of your time.

Writing Your Testamentary Will

Make a List

The simplest way to start your will is to make a list of everything of value that you own. Go beyond the house and car and get down to the details. Family heirlooms, jewelry, collectables, even items with only sentimental value should all make the list. Anything that has value to you can be added to your will and left to the loved one of your choice.

Remember, however, there are restrictions. The money and property that you designate to heirs must be owned completely by you. Your will cannot include funds that are shared with another person or company. Examples include:

Life Insurance and Retirement Funds
To assign beneficiaries for these accounts, you need to go through the institution that manages them.
Marital Property
Retirement funds and other savings accounts that were set up under the institution of marriage are considered "Marital Property" (also called "Community Property" or "Joint Property"). Spousal rights are in place to prevent one or both parties from signing away a joint savings account to someone outside the partnership.

Each state has individual laws regarding distribution of assets upon death. If you're unsure about these details, or want more information, consult an attorney who specializes in understanding these laws.

Choose an Executor

Assigning the role of executor is one of the most important decisions to make when creating your will. The executor is the person who concludes any affairs you leave behind, including the management of your estate and the distribution of your assets. He or she will guide your family through the legal issues following your death, so it's important to choose an executor wisely.

When considering candidates for your executor, the individual should be both trustworthy and capable of handling the legal obligations that come with concluding your legacy. The executor's job will include:

Opening and Managing Your Estate
Resolving Outstanding Debts
Filing Final Taxes
Informing Creditors of Your Passing
Mediating Family Disputes over Inheritance

Legal dealings and family conflicts are stressful situations. Choose a capable friend or relative as your executor, or allot some of your personal funds to pay for the services of an attorney.