Creating a Will: Essential Steps to Protect Your Assets
In the United States, most Americans believe estate planning is important. However, according to AARP, only roughly four in ten adults have a trust or will in place. Setting up an effective estate plan is essential to protect your assets and make sure your final wishes are fulfilled after your death.
One of the most effective ways to do this is through the creation of a legally sound will. A will outlines how you want your assets distributed after your death, designates guardians for minor children, and appoints an executor to carry out your wishes. Without a will, state laws will dictate how your assets are divided, which may not align with your wishes.
At Bond Law Office, based in Fayetteville, Arkansas, we understand the importance of making sure your loved ones and assets are protected for the future. We strive to help our clients understand the specific laws and guidelines regulating estate planning, and we are dedicated to walking you through the steps required to create a will that complies with Arkansas state-specific law.
Why Is a Will Important?
A will outlines what will happen to your assets and estate after you pass away. Without a will in place, your estate will be distributed based on Arkansas’s intestacy laws, which determine the division of your property based on a state-determined hierarchy. This may result in outcomes that do not align with your desires or expectations.
For example, if you pass away without a will, the state will determine how your property is distributed to your heirs, which could create unintended conflicts between family members. A proper will allows you to do the following:
Designate who will inherit your assets, from personal belongings to real property
Name a guardian for your minor children, if applicable
Minimize disputes among beneficiaries over what you intended
Expedite the probate process for your loved ones
Leave specific instructions for charitable donations or unique wishes
Taking the time to create a will is one of the most thoughtful ways to protect your family and make sure your legacy is handled as you intended.
Steps for Creating a Will in Arkansas
Creating a will can often be seen as a challenge. However, it doesn't have to be. Follow these essential steps to help you create a comprehensive will that best protects your assets and reflects your final wishes.
1. Determine Your Goals and Take Inventory of Your Assets
Clearly outline your goals for your will. This includes identifying the beneficiaries you wish to leave your assets to and any specific items or property you want them to receive. Next, take an inventory of all your assets. This should include:
Real estate
Bank accounts
Vehicles
Investments (e.g., stocks, bonds, or retirement accounts)
Personal belongings with significant value (e.g., jewelry, art, or collectibles)
Digital assets (e.g., online accounts or cryptocurrencies)
Be diligent in identifying everything that forms part of your estate. Having a complete picture of your assets will make sure nothing is overlooked during the planning process.
2. Designate Beneficiaries
Clearly define who will inherit your assets. Be specific when naming your beneficiaries, especially if more than one person receives an asset. It's also important to name backup beneficiaries in case your primary choices are no longer available.
Certain types of assets, such as life insurance policies and retirement accounts, are distributed based on beneficiary designations filed directly with those accounts. Make sure these designations are up to date and align with your overall estate plan.
3. Appoint an Executor
An executor is the person responsible for managing and administering your estate after your passing. This includes gathering your assets, paying debts and taxes, and distributing property to your designated beneficiaries.
Appoint someone you trust who is organized, responsible, and capable of carrying out these duties. It’s also wise to name an alternate executor in case your first choice cannot serve.
4. Name a Guardian for Minor Children
If you have minor children, be sure to name a guardian who will take on the responsibility of caring for your children should anything happen to you. Take time to carefully consider this decision and communicate your wishes with the individual you choose before naming them in your will.
5. Draft Your Will
Once you’ve organized the necessary details, it’s time to draft your will. While there are online templates and do-it-yourself options available, working with an experienced estate planning attorney is the best way to make sure your will is legally sound and comprehensive.
An attorney can tailor your will to your specific circumstances and address any unique concerns related to Arkansas law.
6. Sign and Witness the Will
After drafting your will in writing, you will need to sign it in the presence of at least two witnesses. The witnesses will also need to sign the document in your presence. This step is crucial for the will to be considered valid under Arkansas law. You can also have the will notarized to further strengthen its enforceability in court, although notarization is not a requirement in Arkansas.
7. Store the Will in a Safe Location
Once you've finalized your will, store the original copy in a secure location, such as a safe deposit box or fireproof safe. It’s also a good idea to inform your executor and close family members where the will can be found so it can be easily accessed when needed.
Legal Requirements for a Will in Arkansas
Arkansas law establishes strict requirements for what makes a will valid. Failing to meet these criteria could render your will unenforceable. Under Arkansas law, a valid will must meet the following conditions:
Age of the testator: You must be at least 18 years old and of sound mind (mentally competent) to create a will.
Written format: In Arkansas, a will must be in writing to be legally valid. While handwritten wills, also known as holographic wills, are recognized in Arkansas, they must be entirely written in your handwriting and signed by you, the testator.
Witnesses: For a formal will to be valid, it must be signed by at least two witnesses who do not stand to benefit from the will (i.e., non-beneficiary witnesses). The witnesses should be present at the time of signing.
Signature: The will must be signed by the testator, as well as the witnesses, to be considered valid under Arkansas law.
Understanding and adhering to these requirements will help you make sure your will is enforceable and protect your assets as intended.
Reach Out to an Experienced Attorney Today
Creating an effective estate plan in Arkansas can be complicated. However, an experienced wills attorney can help make sure your wishes are clearly documented and legally binding. At Bond Law Office, we will guide you through the process of creating a will and help you designate protection for your family and your legacy.
With offices in Fayetteville and Fort Smith, Arkansas, we serve clients throughout the surrounding areas. Reach out to us today to schedule a free consultation.