Creating a last will may not be at the top of your to-do list, especially while you are healthy and thriving. But estate planning is an important way to protect your loved ones. A well-written will does not just clarify your wishes; it can also help your family avoid unnecessary court delays, disputes and even tax consequences. Here are five key things to know when writing your will.
1. Appoint a responsible executor
Your executor is the person who handles your affairs after you pass. They will pay any debts, manage your assets and file your final tax return. Choose someone you trust who’s organized and responsible; they may also need to work with the probate court and handle any tax matters.
2. List all major assets and name beneficiaries
Make sure your will lists your major assets, like your home and investments, and clearly states who should get them. Remember that some assets, such as retirement accounts and life insurance, go directly to the beneficiaries named on those accounts. If those names do not match your will, it can cause confusion or unexpected tax issues.
3. Understand the tax impact of inherited accounts
Traditional IRAs and 401(k)s can create tax burdens for your heirs, since withdrawals are taxed as income. Most non-spouse beneficiaries must withdraw the full amount within 10 years, which could raise their tax bill. To reduce this risk, consider converting to a Roth IRA, using a trust or reviewing your beneficiary designations to make sure they align with your will.
4. Consider lifetime gifts or charitable contributions
In relation to estate taxes, you can lower your estate’s value by giving away assets while you are still alive. You can also include charitable donations in your will to reduce estate taxes and support causes you care about.
5. Update your will as life and laws change
Your will should reflect your current life, including your family structure, finances and the latest tax laws. A review every few years can help keep everything aligned and legally sound.
The greatest gift you can leave behind
Planning for the future can feel overwhelming, but taking the time to put your wishes in writing is one of the most meaningful ways to support your loved ones. An experienced Ohio estate planning attorney can guide you through the process with compassion, helping you create a will that honors your intentions and protects your family, both emotionally and financially.