August is Make a Will Month
In most regards, we might aspire to be more like Abraham Lincoln, Pablo Picasso, Martin Luther King, Jr., or Prince. But I urge you to be boldly different from these people in one important aspect and make sure you have a will. Dying intestate (without a will) can create a real mess for your loved ones to sort through.
I just learned that August is Make A Will Month. This struck me as humorous at first. Is it some kind of joke related to the dog days of summer? “Hydrate, or make your final arrangements!” But then I realized that even if it is a little weird, it creates an opportunity to discuss an important topic.
A will is simply a set of instructions for how you wish your property to be distributed once you die. You can get a cheap, quick will executed online. Some states like North Carolina even recognize holographic wills–a signed document in your own handwriting with instructions. This can be an acceptable (if imperfect) final will and testament. (Michael Jackson and Aretha Franklin initially were believed to have died intestate, but holographic wills were later discovered.)
An attorney friend once told me that it is worth paying a real lawyer to draft your will. You’re not spending that money on yourself. It is something you are doing for your loved ones, he explained. Money saved today on a cheap, poorly-worded, or vague set of documents leaves the door open to bitter disputes you wouldn’t want to subject your family to. In my practice, I have seen families torn apart by such disputes when a family member’s wishes aren’t clearly stated. Heartbreaking doesn’t begin to describe it.
Already have a will? Excellent! When was the last time you reviewed it? Births, deaths, marriages, divorces, and graduations are milestones that typically merit a review of plans. Otherwise, you don’t need to update a will all that often.
But don’t be like Mr. Jackson or Ms. Franklin. Make sure your will is with your important documents. Tell somebody where it is. If you paid a lawyer for the service, they will also keep a copy in their office. Wherever you decide to store it, be sure not to leave it in a safe deposit box. Ostensibly you are the only person the bank is to allow access to the box. If your loved ones believe your will may be in your safe deposit box, they’ll need a judge's order to drill the lock out. Nobody wants to be part of that process.
Probate is the legal (and public!) process of settling your estate. Things like insurance policies and retirement accounts are not subject to probate. They use beneficiary designations to quickly and cleanly distribute assets. Trusts are not subject to probate either. They can be popular vehicles for anyone who wants to transfer property outside the public records of the probate courts. For the charitably-minded, all of these vehicles can be great tools for supporting your favorite non-profits. But just like a will, beneficiary designations need to be reviewed from time to time. It’s not uncommon for an ex-spouse to get a surprise windfall from a deceased spouse who forgot to make the proper changes!
Obviously, you’re eager to get started right away. If your attorney scheduled you a few weeks out and you want to take action sooner, here are some ways to plan for your digital property in just a few minutes.
iPhone users can go to settings → Apple ID → Password & Security → Legacy Contact
Facebook users can go to Settings & Privacy → Settings → General → Memorialization Settings
Google users can visit the Inactive Account Manager settings.
Everyone should have a password manager. In fact, I wrote about it in this blog post. And if you have a password manager, you can also assign a legacy contact for your passwords.
So those are my thoughts on Make a Will Month. Jump on it! The last few weeks of summer will feel all the more relaxing knowing that you have this important business taken care of.
