A will is an important legal document that specifies who gets your property when you die. It is generally the best way to name a guardian for your minor children and to name an executor for your estate. The executor will handle your affairs when the time comes to probate the will.

It is important to seek professional advice when preparing a will. A poorly written will that confuses your heirs can be far more costly to correct than the fees an attorney will charge to prepare a will.

If you have minor children, a will is necessary for you to name a guardian who can provide for their care. You should consider naming a successor in the event that the guardian you choose is unable to take on the responsibility. Your children should also feel comfortable with the choice. To help financially with the children’s care, you may wish to leave assets which the guardian can access. Gifts for minors may be left in the care of a legal guardian and/or in a trust.

Also, consider who you would choose to be executor of your estate. The executor must use competent judgment if your estate is to be distributed in the manner you desire. For example, timing the sale of assets can make a considerable difference in the value of your estate. The estate fees paid to the executor are often established by state law. If your estate is large and complex, naming co-executors might be preferable, such as an adult relative, a trusted friend or a financial institution.

A will is also your opportunity to leave specific personal items to individuals who would particularly enjoy them. Some attorneys may suggest putting these directives in a separate letter of instruction. Regardless, making specific bequests can prevent conflicts over who gets what — which can happen when the will leaves the “contents of the home to be divided equally” among the heirs.

When the will is completed, keep the original where your survivors can easily locate it. Your attorney’s office may be a wiser choice than a bank safe deposit box, which in many states is sealed upon death of the owner. Consider giving a copy to your executor or let the executor know where it can be accessed.

Finally, keep in mind that you should review your estate plan whenever there is a significant change in family circumstances such as marriage, divorce, birth, adoption, death or a change of your residence to a different state. You should also review it whenever there is a major change in your assets or a change in the law. It may be prudent to review your will annually along with your other essential estate documents.

Powers Of Attorney

With a power of attorney, you can give another individual the legal authority to act on your behalf for a purpose you designate, such as paying your bills, managing your personal affairs or handling your finances. You must be of sound mind and not under mental duress to prepare and execute any of these documents. Unless it is a durable power of attorney, a general power of attorney expires if you become incapacitated. You have several options for authorizing another individual to act on your behalf.

Durable Power Of Attorney For Financial Transactions	Continues to operate even if you become unable to manage your own personal and financial affairs. As long as you are mentally competent, you can revoke a durable power of attorney whenever you wish. Consider executing a new durable power of attorney every 3–5 years to confirm your intention. Take your durable power of attorney to your financial institutions while you remain competent to confirm they would accept it.
Health Care Directive, Living Will Or Directive To Physicians	Designates medical procedures you want taken if you become too ill to state your preferences. You can specify types of treatment you would reject or accept, such as no cardiac resuscitation, but maximum pain relief. You determine when your instructions apply, such as when your diagnosis is a terminal condition. Consult with your physician to determine your options. Leave a copy of your living will with your physician. Review your options periodically. Revise your health care directive to reflect changes in your preferences. New medical discoveries could alter your decisions.
Durable Health Care Power Of Attorney Or Health Care Proxy	Allows you to appoint someone to make health care decisions on your behalf should you become incapacitated. Have it prepared by an attorney who specializes in the field to ensure it conforms to your state’s laws

Letters Of Instructions

Unlike wills and powers of attorney, a letter of instructions is not a formal, legal document. Instead, it is a summary of essential information that you prepare as a way of helping your survivors cope during a difficult time.

Keep the letter of instructions updated, since the information is likely to change over time. Store the letter in a safe and readily accessible place and be sure family members know where to find it.

If your wishes include donating your body organs or tissues to transplant facilities, you will need to sign the proper forms to authorize the donation. In some states, you can do this as part of renewing your driver’s license, or simply obtain the form from your local Department of Motor Vehicles. Your physician, local hospital or estate planning attorney should be able to tell you what is required in your state.

Clarify Your Wishes
Along with providing important information, you can clarify your wishes concerning a variety of personal and financial matters including the following.
Instructions on whom to notify and what to do immediately following your death.
Funeral instructions.
Directions for handling any important financial matters that may need immediate attention.
An updated inventory of investments, insurance policies and other important personal financial matters, such as any debts you owe or money owed to you.
Locations of any valuable documents, such as wills, trusts, deeds, military records and birth or marriage certificates or divorce decrees.

The USAA Educational Foundation publications, A Guide For Your Survivors and Managing Your Personal Records, offer more information.

Next: Estate Planning Tools

Updated Thursday, January 15, 2009

HELPFUL FORMS & LISTS

Calculating The Value Of Your Estate