Page 104 - Managing Your Resources - Student Syllabus - short combined

member could make a mistake. Your family might get more for their money if you hire an attorney or
bank to execute your will.

4. Decide if your executor will receive compensation. If you choose a bank or lawyer as your executor,
there will be a fee involved, which is usually between 2 percent and 4 percent of your estate's assets.

If you're designating a family member or friend, it’s a good idea to be clear about whether they’ll be
compensated and, if so, whether it will be an hourly rate or a percentage of assets.

Keep in mind that closing an estate can be an arduous, complicated slog. You may have your reasons for
not wanting your executor to earn some money closing your estate, but hopefully they're good reasons.

5. Pick a guardian for your kids. Do you need to get permission from your friend or family member
before appointing them guardian? And if your designated guardian turns down the role, a court will
choose the guardian.

6. Be specific about who gets what. If you want your wedding gown to go to your daughter or your
antique desk to go to your son, put that down.

And if someone in your family isn't going to receive anything, make note of that, too. Name that person
and say that they aren't getting anything, otherwise, the implication could be that you forgot about
them, and you could find your will challenged in court.

You may also want to explain in the will why someone isn't receiving money. For instance, if you've
given one child a lot of financial assistance as an adult and the other virtually none, you may want to
leave the bulk of your assets to the one you didn't help. Explaining that could assuage hard feelings
after you're gone.

7. If there's more you want to say, attach a letter to the will. In the movies, there's often a reading of
the will where heirs come together and hear who will receive what. That doesn't happen often in real
life. Wills, being legal documents, are often impersonal, although there's sometimes room for the
occasional sentimental or humorous aside.

8. Other people need to sign the will. You need witnesses, and the witnesses can't be people who stand
to inherit anything in the will. Your witnesses also need to be at least 18 years old. And ideally, they
should be people who are likely to be around when you aren't. That’s because if something goes wrong
and your will is contested in court, the judge may want a witness to testify.

9. Find a place for your will. Don’t just throw it in a shoe box and forget about it. What if the
unthinkable happens and your heirs need it?

Make sure someone you trust knows where to find your will as well as any other important papers and
passwords to financial institutions like banks. And it's probably a good idea to store the original copy
somewhere secure, like in a fireproof safe.

10. Now that you're done, you aren't done. Assuming this is still an unfinished part of your agenda, you
should work on a power of attorney and a living will in case you're ever incapacitated.

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