“The whole journey of life is a journey of preparation.”
Pope Francis
As a father, you need a Will.
Less than one-third of Americans have a will or living trust – and that paltry number is declining. Many fathers believe they don’t have the assets or transferable wealth that make up an estate. Some don’t want to plan for their inevitable fate. The more cocksure believe they have time since they won’t die for many decades, even though COVID-19 proved otherwise. Financial planning relies on long-term vision! Don’t narrow your focus to saving today and take your eyes off the larger pie further ahead for you and your family, even if it’s just out of sight.
Some fathers stop before they start. 12% of Americans don’t have a will because they don’t know how to set one up. Sound like you? You’re not alone! Keep reading for some guidance, but also do your own research depending on the state you live in (it matters, a lot).
If you pass away without a last will, then the state government could determine what happens to your children and property. Even if you’re married, your partner may not automatically take ownership of your estate. This is bad, because the state won’t know your wishes or your interpersonal relationships which affects where your children will end up living.
A will sets up your children for future success when you pass on.
Let’s start by breaking down the nomenclature, synonyms and meanings.
A will (aka last will)
Nominates the legal guardian of your minor children and directs the distribution of your assets upon the end of your life.
A living will (aka advance directive)
Details the medical care that you, Father, wish to receive in the case of incapacitation and loss of the ability to communicate.
A trust
A legal agreement for the transfer of assets from you, the owner / grantor / trustor, to a trustee, like your kids. This can happen while you’re alive, not necessarily at the time of death.
Estate planning
The preparation of tasks that serve to manage an individual’s asset base in the event of their incapacitation or death. (per Investopedia)
How to Execute a Will
It’s a whole legal process but not crazy. Let’s try to boil it down to six steps:
- Find your executor, as in the person who is going to execute your will as instructed at the time of your death.
- Write your will.
- Who will care for your children? If your kids are under 18 (“minor”) then you need to designate a guardian to watch over your children, if their birth father or mother are not around.
- How will you distribute your assets? You could live to a spouse, partner, sibling, or anyone you’d like your stocks, bonds, cash, and real estate. In the same vein, also name the beneficiaries of any insurance plans, IRAs or 401-k accounts.
- Determine and describe how you would like to be memorialized, like a burial or cremation.
- Then, your will must be signed and witnessed per state law.
- Because this involves the law, it’s worthwhile to set up a durable power of attorney (POA) to direct other assets and investments.
- After that, file your will with the probate court in your jurisdiction. This verifies the authenticity and legality of your will.
- Upon your death, you will have everything set up for your will to be carried out by your designated executor.
As with all things personal finance, you should revisit and update your will as you grow in your career, take on new substantial assets and endeavors, and as your children prepare for further educational and life opportunities. Plan like hell, and be good so you go to heaven. Check out our resources page to get started on budget planning.
Authoring your own will gives you and your family the power to determine what happens when you pass away. You avoid probate court and foreseen interpersonal squabbles. Because a will determines who cares for your young children, as well as who gets your assets, it’s something that most adults should have.
Looking to get started? Good for you, Dad! Check out Investopedia’s best online will makers here.
