August is National Make-a-Will Month. We talked to Abbey Stephenson, Planned Giving Officer at Renown Health Foundation, to learn more about wills, trusts and estate plans and why you should feel motivated this month to get started.
Why Make a Will
There are so many reasons why it is difficult to make a will or put an estate plan in place. These include:
- Lack of time or money to prepare a plan
- The misperception that “only rich people need an ‘estate plan’”
- How intimidating legal documents can be
- General discomfort with planning for the future
Given the barriers to making a plan, it’s not surprising that only 32% of Americans have a will or trust in place. But having a will or trust matters because these are the documents where you can say who will inherit your assets, who will manage your assets and estate, and who should be guardian of a minor or a child with a disability.
Where to Begin
If you have been thinking about putting together a will and don’t know where to begin, here are some next steps you can take.
1. Learn the terms. If you have never created a will, trust, or an estate plan, the language can be hard to get used to. A few important terms to know include:
- Last will and testament (also known as a will): a legal document that describes how you would like your property and other assets to be distributed after your death. This is also the document where you can nominate a guardian for a minor or disabled child.
- Personal representative (also known as an executor): a person named in a will responsible for collecting your assets, paying your debts and final taxes, and distributing the remaining assets to those stated in your will. Personal representatives must be formally appointed by a judge and report certain information to the judge for review and approval.
- Living trust (also known as a revocable or family trust): a legal arrangement set up through a document called a trust instrument or a declaration of trust that gives someone called the trustee power to make decisions about the trust creator’s money or property held in the trust.
- Estate plan: a collection of documents that help organize what happens to you and your assets upon your disability and death. Your estate plan is comprised of documents such as a will, trust, and advance health care directive.
If you want to learn more about these terms and estate planning in general, you are invited to attend a free one-hour estate planning education session on Aug. 22, 2024, at 10 a.m. or Oct. 21, 2024, at 11 a.m., hosted by Renown Health Foundation. Click here for more information and to register.
2.Create a list of assets. Start by creating a list of your assets including real estate, investments, bank accounts, retirement accounts, business ownership interests, vehicles, life insurance, valuable personal property like jewelry or artwork, and any other significant assets. Click here and read our free estate planning guide.
3.Put together a list of 2-3 people you trust. When you create your will, you need to name a personal representative who will collect all your assets, pay your debts, and work with the probate court to distribute the balance to the people and charities you name in your will. If you create a trust, you need to name a trustee to manage the trust assets under the terms of the trust document.
It is a good idea to include at least two people who can take on these roles in case the first person becomes unavailable. If you do not have anyone you would trust as a personal representative or trustee, there are trust companies, banks, and other professionals and institutions who may be able to assist you.
If you are the parent of a child who is under 18 or has a disability, you will also nominate a guardian in your will to care for that child if you and the other parent are gone.
4.Start a list of who you would like to inherit your assets. Which people and organizations would you like to inherit the assets you own at the time of your passing? And which assets or how much would you like them to receive? You might want to consider who relies on you for support such as family members or charities, individuals and organizations that have made a difference in your life, or those you have a special fondness for.
It is important to use the legal names of individuals you include as beneficiaries and the Tax ID number for any charity you include.
If you decide to make a gift to Renown as part of your will or estate plan and notify us, you will be included in the Renown Legacy Society. Legacy Society members enjoy invitations to exclusive events, special acknowledgments, and other unique benefits. Click here to learn more about the Renown Legacy Society.
5.Put together a list of your professional advisors and enlist their help. Write down the names and contact details for any professional advisors you work with such as your accountant, financial advisor, investment manager, attorney, insurance agent, and planned giving officer.
You may want to seek their advice on how best to proceed and which assets are best gifted to which individuals and organizations from a tax standpoint. Collaboration among the professionals with whom you work can help your plan to run more smoothly when it is needed. Depending on your circumstances, it may make sense for you to introduce your trusted individuals to these professionals.
6.Start drafting. Once you have these items in place, you will be in a good position to begin the drafting process. There are many capable estate planning attorneys in our community who can help you with drafting. There are other drafting resources available as well, but only a licensed attorney can provide you with legal advice. Click here to attend the free Family Estate Planning Series sponsored by Renown and presented by PBS Reno and the Community Foundation of Northern Nevada.
Reviewing and Updating Your Will: Keeping Your Plan Current
If you've recently had a big life event such as getting married, divorced, a birth, death or serious illness in the family, or the sale of a business, you may want to review your will and plan and make any necessary updates.
Changing your will or plan will involve preparing appropriate documents to reflect your desired updates. Some of the types of documents used to make updates include:
- A codicil to update a will;
- An amendment to update a trust; and
- A change in beneficiary form for a life insurance policy, retirement account, or other account that transfers upon your passing.
Where to Go for Help
Explore resources and services available for estate planning:
Thinking About Including Renown in Your Will? Here’s How
If you would like to include Renown, a locally run not-for-profit, in your will or estate plan, we would be happy to talk to you about how your gift will make a difference for our mission and the many ways you can give. Please contact Abbey Stephenson at abbey.stephenson@renown.org.
You can also find sample language to include Renown in your will here.
This information is not legal or tax advice; it is informational only. Please contact your attorney or tax consultant for advice. Renown disclaims any liability based on this information.
