Don’t leave behind a legacy of needless taxes, legal bills, and disputes. A well-planned will can ensure that the assets in your estate go where you want them to, from cash gifts to complex trusts.

Answering these 10 essential questions can help protect your assets and your heirs.

1. What assets do I own and who are my beneficiaries?

Whether you draw up a will yourself or seek professional guidance, start by creating a fact sheet of relevant data. Identify anyone with a stake in your estate: spouse, children, grandchildren, parents, siblings, etc. 

Then list your real estate property, personal possessions, and financial assets along with their value and where to find them (or records of them). Once you gather your financial information, you can use Quicken to keep it all in one places and keep it up to date. 

This provides a good working estimate of the value of your estate, which is the basis for estate taxes if any are due.

2. How should I legally express my intentions?

Different states have different rules about what’s required to make a will legal. If you don’t do things the right way, your will might not be valid, so make sure you understand the rules where you live. 

The best way to do that is either to hire an attorney or use a template service. If your will is relatively simple, like leaving everything first to your spouse and the to your children equally, a template service might be all you need. For more complex planning, an attorney is usually best.

You can also add specific bequests, such as making sure a certain piece of jewelry or art goes to a specific child or leaving a certain amount of money to a local charity. Just be sure to list these out clearly to make things easier for your executor.

3. Who will execute my will and manage my estate?

Wills often specify three separate roles subject to state laws: 

  • An executor administers the settlement of your estate. 
  • A trustee manages any assets until they’re distributed to your beneficiaries. 
  • A guardian raises minor children, if the situation warrants. 

In case you’re incapacitated for a time before your death, which is not uncommon, you also should confer power of attorney on someone to manage your financial affairs, subject to provisions that you stipulate.

At the same time, consider a living will to make your wishes clear when it comes to difficult healthcare decisions.

4. Have I appointed guardians for my minor children and dependents?

  • Select a guardian for your minor children and any dependents to ensure their care.
  • Clearly state this in your last will and testament to avoid legal complications.

5. Should I set up trusts or power of attorney arrangements?

A trust is an agreement under which money or other assets are held and managed by one person for the benefit of another. Trusts serve many purposes, including financial support for minor children as well as providing personal and financial safeguards for beneficiaries. 

Trusts are commonly used to conserve or transfer wealth and avoid unnecessary taxes. Because the process of probate can take months or even years to complete, trusts that legally avoid the probate process can also save your family a significant amount of financial hardship — especially if you have family members who depend on your wealth for their support.

6. Have I met all legal formalities to make my will valid?

  • Ensure you are of sound mind and have the mental capacity to create a valid will.
  • Follow your state laws regarding witnesses, possibly involving a notary public, and include a self-proving affidavit.

Be especially careful when it comes to witnesses. In most states, a person who will benefit from your will can not be a witness to that will, so be sure your witnesses are not interested parties.

7. Have I considered tax implications for my beneficiaries?

Spouses can inherit assets without incurring federal tax, but assets and gifts transferred to other heirs may trigger taxes. The amount of that tax depends on current federal and state laws. 

In 2024, there is a federal inheritance tax, but the exemption amount is well into the millions. Unless your estate is worth more than $13.61 million, or $27.22 million for married couples, your heirs won’t pay tax on their inheritance.

Now, there’s also a gift tax that plays into it — if you’ve given your heirs more than the annual gifting limit in a given year, the additional amount reduces your estate tax exemption. 

However, if you have enough personal wealth for that to be a concern, you’ll probably want to hire an estate planning attorney to help you navigate your best options when it comes to wealth distribution and tax planning.

8. What if I want to leave money to charity?

Many Americans leave some amount of money or property to their favorite causes. You can leave all or partial interest in most assets to a legitimate charity that’s eligible for tax-deductible contributions. The IRS makes this determination, so you can find out which charities qualify by looking on the IRS website. 

There may also be rules for determining the value of assets with no obvious market value, as well as limits on the amount of the tax deduction you’re allowed to take. Gifts left to a regulated public charity that seeks donations, for instance, receive different tax treatment than assets left to a private family foundation or trust that your heirs control.

Gifting stock to a charity may also avoid significant capital gains taxation — just another reason to consider an estate planning attorney if you have a variety of personal assets and holdings.

9. Do I need to update my will due to life changes?

While a well-drafted will takes potential future changes into account, it’s always a good idea to update your will in the event of a major life change, such as a marriage, divorce, birth of a child, or death of an heir. 

Starting your own business can also have repercussions for your estate plan depending on the business structure you choose.

As a general rule, it’s a good idea to review your will every five years or so to see whether anything needs to be updated.

10. Where should I store my will and who should have copies?

Generally speaking, the will presented for probate needs to be the original paper copy that has your physical signature as well as the signature of the notary public and your witnesses. Decide on a secure location where you’ll keep it, but make sure someone you trust has access to it.

It’s also a good idea to provide your executor with a copy of your will, and make sure they know where they can find the original.

While there’s never anything easy about losing a loved one, you can lighten the load on your family by making sure your will is legally sound, clear about your intentions, and easy to access when the time comes.