Writing A Will: A Homeowner's Guide

As a homeowner, you've invested a significant amount of time, money, and emotion into your property, and it's important to plan for what happens to it beyond your time with it. Luckily, there's a way you can put those worries to rest: a will. Having a will makes things much easier on the recipients of your property and ensures that your possessions are distributed according to your wishes. But as a legal document, the process of writing one can seem a bit complicated to someone who's never done it. Here's NewHomeSource's basic rundown on what a will is, how one is written, how to ensure that it's legally binding, and what common pitfalls to avoid.

A will, also known as a last will and testament, is a legal document that outlines how you want your assets distributed after your passing. It defines who will receive your property, possessions, and other assets. To be valid, a will must meet specific legal requirements, which vary from state to state. For example, a testamentary will, or a will that’s been written and was signed in the presence of witnesses, is one of the most common kinds of will, and is usually regarded as one of the most secure versions. There are a few different ways to write a will: you can do it yourself, have a legal professional assist you, or find templates online.

Your assets, which are the possessions in your name only, are going to be the subject of your will. This includes items as mundane as silverware to pets to your home. Since your property is likely going to be one of the biggest items of contention, you’ll want to be clear about what you want to happen with it. Before you begin writing your will, take some time to consider the following:

-Listing assets: Make a comprehensive list of all your assets, including real estate, personal property, investments, bank accounts, and any other items of value.

-Identifying beneficiaries: Determine who you want to receive your assets. This could include family members, friends, or charitable organizations.

-Deciding on asset distribution: Decide how you want your assets to be distributed among your beneficiaries. You can specify percentages, specific items, or conditional gifts.

There are also some terms you should know, namely the names of the people that are a part of the process of creating the will and distribution of assets:

-Testator: The person who creates the will.

-Executor: The person who is appointed by the Testator to carry out the will, usually a close friend or family member.

-Beneficiaries: The person, people, or organizations that are left assets by the Testator.

-Probate: The judicial process by which the will is proven in a court of law to be a valid document that is the true last will and testament of the deceased.

Step-by-Step Guide to Writing Your Will

1. Choose how to write your will:

You have a few options when it comes to writing a will:

-Online: There are several online platforms that offer templates and guided assistance for creating a will. While these simplify the process, usually designed to help you write what’s called a ‘simple will’, it can still be beneficial to have a legal professional look it over.

-With a lawyer: Hiring an estate planning attorney is a great way to ensure that your will is legally sound and tailored to your specific circumstances. They can help you write the will, plan your asset distribution, and make sure the content is legally binding.

-DIY: You can write a will yourself, with no assistance. If you decide to go this route, however, you’ll still need witnesses to the signing, and though it’s not always a legal requirement, having it notarized can help prove its authenticity.

2. Appoint an executor:

-Select a trusted individual to carry out the instructions in your will. This person can be a member of your family or a trusted friend. They will manage your estate and distribute the assets to your beneficiaries.

3. Provide specific instructions for asset distribution:

-State clearly in the will who is supposed to receive which assets. Identifying where your assets are going to go will go a long way to making sure that the people you intend to receive your assets do get them and leave little to no room for disputes.

4. Discuss residuary clauses:

-A residuary clause specifies what happens to any assets not specifically mentioned in your will. This is a good way to ensure that those assets are still taken care of and there’s no confusion or disputes over them.

Making Your Will Legally Binding

To make your will legally binding, you need to adhere to your state's signing and witnessing requirements. This usually involves signing the will in the presence of two or more witnesses, who must also sign the document, attesting that they saw you sign it. Some states may also require notarization, where a notary public verifies your signature. Generally, for a will to be considered legally binding, it must be signed by the testator (the person writing the will), the witnesses can’t be beneficiaries of the will (people who receive assets from the will), and the testator must be of sound mind (which means a legal adult, 18 or more years of age, and conscious of their actions).

Storing and Communicating Your Will

Once your will is complete, store it in a safe and accessible place. A waterproof and fireproof safe is a good place to keep it if you have one in your home, but it’s not your only option. Safe deposit boxes in banks are often used to store important documents, including wills. You can leave it with a probate court, but it becomes a public document in this case, so if you don’t want anyone to know the contents of the will before you pass, other options might be better. Some people opt to leave their wills with their lawyers, though some lawyers will not take them to avoid liability. You could even leave the will with your executor. Whatever your decision, make sure you let you executor know where you’ve stored your will, and it’s common to give them a backup key so they can access it if you’re unable to.

Updating Your Will

It's important to review and update your will periodically, especially after major life events such as marriage, divorce, the birth of a child, or significant changes in assets (like buying a house) or beneficiaries. You can amend your will with a codicil (an addition or change) or revoke the old will and create a new one. This article is a great guide on what to know about your will and how to update it as you age.

Common Mistakes to Avoid

As something long-term, it’s not uncommon to make mistakes when you’re creating or maintaining a will. For one, not having a will at all means there will probably be quite a few claims and disputes about your assets. Not updating your will after major life events and changes means that some assets may go unclaimed and leave the beneficiaries unclear. If you’re storing your will in your home, it can be easy to forget about it or accidentally put it in a container that’s not secure. You’ll want to be sure that your Executor is someone you trust implicitly or is a legal entity that will keep it safe from dubious intent. If you’re unsure, legal counsel is a good way to make sure you put together the will in a way that adheres to your desires.

As one of your largest and most valuable assets, wondering what happens to your home can cause a lot of stress, and deciding what happens to it in your will is a good way to alleviate that pressure. It’s a lengthy process, but it’s one that will give you and whoever you designate as your beneficiaries, peace of mind. As a homeowner, it pays to be prepared, and a will is some of the best preparation you can do long-term.

To learn more about homeownership, visit newhomesource.com/learn.