SETTING UP A WILL
While it may be difficult
to consider the possibility of death, a will
is the only way to guarantee that your
children will be cared for by who you want,
and your assets will be distributed properly
if you should die. Therefore, a will is an
essential part of a family’s planning for
the future.
A will is a legal document
that specifies who will get your property
when you die. You may want to leave
everything to your spouse or child, or you
may want specific items to go to certain
family members or friends. As well, you can
specify a legal guardian for your child if
you should die before they are of legal age.
You can specify the type of funeral and
burial that you wish, along with any desire
that you may have for organ donation.
Without a will, there is
no guarantee that your wishes will be
honored. The state, in which you live, will
divide your assets by a strict formula that
may not be to your liking. As well, the
state may appoint a guardian for your child
who may or may not share your views on child
rearing.
You can either work with
an attorney to create a will or write your
own using one of the many self-help books
that are available. Ask your local librarian
for help on choosing the right book for your
particular needs. Once a will is drafted,
you will need to do a few additional things
to make it legal in your state including:
-
Have the will typed or
computer generated. Handwritten wills
are not generally considered legal.
-
Clearly state that this
is your will in the document.
-
Date and sign the
document with the necessary number of
witnesses required by your state
-
Place the signed will in
a safe location like a locked filing
cabinet. Make sure to tell your spouse,
partner, or will executor where to find
the will.
ALLOWANCES
It may be overwhelming to
think of the costs involved with sending
your child to college. Even though, you may
have 18 years before it happens, early
saving and good planning are key to being
able to provide the funds for your child’s
education. There are many helpful ways to
start saving now including:
-
IRA and Roth IRA
Accounts – Investment accounts
that allow you to save money while
paying less income tax.
-
529 College
Savings Plans – A savings plan
that is specifically for the cost of
higher education. You can set aside
money that can grow tax-free.
-
Prepaid Tuition
– A savings plan that lets you pay for
the costs of future college tuition at
today’s prices. State colleges and
universities often administer these
plans.
Continue
to Page 2
