Frequently Asked Questions
1. Do I need a will?
Once you die, your estate assets will be used to pay off your debts. A will allows you to state what happens to the rest of your assets by naming specific bequests, and stating how the residuary estate will be divided.
A will also allows you to specify your other wishes:
* You can name the Executor, who is the person who will carry out the terms of the will, and to release the Executor from the need to post a bond.
* You can specify who you would like to take care of your minor children if the children's other parent is unable to care for them.
2. My net worth is well over one million dollars. Is a simple will produced by Wills.Com appropriate for me, or do I need a lawyer?
The Simple Will may not be appropriate if the total value of your estate (Assets plus life insurance proceeds and retirement savings, minus debts) exceeds the federal estate tax exemption. This exemption is $1,000,000 in 2002.
If the total value of your estate, plus the total value of taxable gifts made during your lifetime, exceeds this amount, this excess could be taxed at a rate that currently ranges from 41% to 50%. We suggest that people whose estates are this large consult with estate planning professionals.
The wills produced by Wills.Com are not designed to help avoid estate taxes. On the other hand, the wills produced are still very useful, and might not be inappropriate for estates that exceed the tax exemption.
We believe that most adults should have a will. If your situation is complex, you should consult with an attorney. But even if you do consult with an attorney, it is quick and easy to produce a will online with Wills.Com, and it is cheap insurance until your more complex issues are addressed. Furthermore, it lets you start thinking about the issues you will need to make decisions about.
3. Can I specify who receives the proceeds from my life insurance policy in my will?
Your will cannot specify the beneficiaries of life insurance policies, retirement plans, or annuities. The beneficiaries for these funds are setup by filing with the insurance companies. So it is a good idea to review the beneficiaries on file for these plans after making a will to make sure that they are setup according to your wishes.
4. What is a "guardian for my minor children"?
A Guardian is a person who will take care of your minor children if the childrens' other parent is not able to. Naming a Guardian for your children only expresses your wishes, the actual appointment of the Guardian can only be done by the court. The court is only interested in the best interests of the children. The court appoints the nominated Guardian unless it finds compelling reasons not to do so.
You can also name two persons (for example, two sisters or a married couple) to act as co-guardians. If you do so, it is a good idea to consider the stability if their relationship.
It is recommended that you also name an alternate guardian in case the primary guardian is unable or unwilling to serve.
