By Diane Sague Ehnes
Do you need a will? It depends. Do you know what’s going to happen with your assets after you are no longer here? Remember, these assets include your children.
One of the questions I always ask my clients is if they have a will, because it’s yet another important part of financial planning. The most common replies I receive are: “No, but we know we need one. It’s on our TO DO list.” Or “We just did one on-line.” I know we live in a do-it-yourself era, especially when we can save attorney fees. However, beware of the on-line or do-it-yourself will. It could cost your heirs much grief and extra expense when you pass away.
Have an attorney draft your will. It’s worth the money.
My sister, an attorney in Colorado whose specialties include will and estate planning, has told me to always advise my clients to have an attorney draft a proper will. Although the on-line, or library book, will looks very simple and straight forward, the verbiage you understand could mean something entirely different in the legal world. She also said it could be better to die with no will than to die with a bad will. The local Oregon/Washington attorneys that I know concur.
The On-line Will
If you are one of the thousands who did the on-line deal, have no fear. Go out and have an attorney review it to make sure it says what you think it says. There are several local attorneys that I know who will look over a will at no cost, or half the cost of drafting one from scratch. The changes may cost more depending on the time it takes to set it straight. And these same attorneys charge a very reasonable rate to create a will if you’re among the other thousands who have yet to cross it off your list.
Estate Planning
If you may leave this earth with an estate worth more than $2million this year*, $3.5 million next year (for federal; Oregon state tax is $1million), your heirs will have an estate tax to pay, which could leave them with half of what you have worked so hard to earn. The value of your estate includes any life insurance you have. Even though life insurance is income tax free, it is subject to estate tax if applicable. If you fall into this category, you may want to do estate planning in addition to a simple will.
Have a Proper Will
As my unifying theme goes… you need to do what is best for you and find an attorney that meets your needs and your budget. Many attorneys offer complimentary consultations and others do not. Do your research. But make sure you have a proper will and that you review it at least every 3 to 5 years, or after an altering life event, to make sure it stays current.
*The amount and rules are a bit different for married couples.
Diane Sague Ehnes is a Financial Advisor with Waddell & Reed. She lives in Southeast Portland with her husband and two young sons. Diane can be reached at dsehnes@wradvisors.com or 503-238-6036 x203. Waddell & Reed, Member SIPC.
The opinions expressed are those of Diane Sague Ehnes and are meant to be general in nature and should not be construed as investment or financial advice related to your personal situation. Please consult your financial advisor prior to making financial decisions.
