K
C
M
Y
12
Wednesday, January 31, 2007
Secure Your Future
The Citizen. Auburn, New York
he topic of wills is not common-
place conversation in many homes.
After all, since wills bring to mind your
own mortality, usually you do not look
forward to talking about them or going
about creating one. For some, wills are
not discussed because of the miscon-
ception that they're something to do
when you get older. But because death
can occur at any time in your life, it is
important to have a will in place to
clarify your intentions. Even though
most people know a will is a good thing
to have, in the United States, only 70
percent of the population actually has
one, according to a survey by
Nolo.com, an online resource that pro-
vides consumers and small businesses
with do-it-yourself legal solutions.
Legally, wills can be created by any-
one of sound mind age 18 or older.
Each state may also pose its own
restrictions. It doesn't matter how
much money you have, how many
valuable possessions, etc., wills are the
simplest way to make sure your assets
and possessions are distributed after
your death in the way you see fit.
WILLS FOR YOUNG COU-
PLES
If you have children, wills are par-
ticularly important. A guardian can be
named for your children in the event
that you and your spouse are both
unable to care for them. By default, a
parent is given custody of a child when
the other parent dies. However, if the
surviving parent is incapable or unwill-
ing to care for the child, a guardian will
be needed. Without a will, the state
will determine who will become the
child's guardian -- a person whom you
may not see fit. Therefore, create a will
if for nothing else than having a way to
secure your child's future. Remember,
however, to discuss guardianship with
your potential choices to ensure that
these people are able and willing to
assume the responsibility.
MAIN COMPONENTS OF A
WILL
Wills often contain other informa-
tion besides guardianship, which is not
limited to, but can include, the follow-
ing:
· A brief description of your assets
and how they should be divided.
· The names of beneficiaries and
alternate beneficiaries in the event a
beneficiary dies before you do.
· Specific gifts you'd like to make to
individuals, such as the gift of a home
or vehicle.
· A named executor (someone who
will carry out the terms of your will).
· Alternate guardians for your chil-
dren, in the event the first choices have
become unable to act.
Note: A living will is not part of
your will. It is a separate document in
which you specify what care you would
like to receive should you become ter-
minally ill or unconscious. It will
become effective at the time you are no
longer able to make sound decisions
about your care.
WILL PREPARATION AND
STORAGE
Making a will requires a little
research and preparation. List all of
your assets to know what you're dealing
with. Then also consider your debts.
You may want to tie up debts. Debts
may be paid out of your estate prior to
any assets being distributed to family
members. Remember to be extremely
clear when naming beneficiaries, so
there will be no confusion when your
will is executed. Where possible, use
full names and the person's relationship
to you, so the will won't be contested.
While a will needn't necessarily be
drawn up by an attorney, it could help
make matters easier. States typically
require that the will be signed in front
of witnesses. The number of witnesses
varies by state.
Wills should be amended or updated
every time a child is born, you change
residences, you get remarried, or when
any major change in your assets occurs.
A will can be amended but, typically, a
new one is just drawn up, superceding
the old one.
The original copy of your will
should be stored in a safe place where it
can be readily accessed at the time of
your death. If you have an attorney
draw up the will, he or she should be
given record of where the original is
held. You can store it in a safe-deposit
box, but some states seal the box upon
your death, so this may not be the best
option. If you name a trust company as
your executor, the trust will safely hold
onto your will until it's needed.
Although the end of your life is not
something you'll want to dwell on,
knowing that your wishes will be car-
ried out in the way you see fit can give
you peace of mind.
Where there's a `Will,' there's a way
SECURE YOUR FUTURE
SECURE YOUR FUTURE
Inside
What is estate
planning ... pg. 2
The Retirement Red
Zone?... pg. 8
Where there's a `Will,'
there's a way...pg. 12
Inside
What is estate
planning ... pg. 2
The Retirement Red
Zone?... pg. 8
Where there's a `Will,'
there's a way...pg. 12
January 31, 2007
percent would earn 8 percent, or
$8,000 in its first year.
Longer-Term Horizon
Because of their multiple-year
holding period (similar to that of a
long-term CD or bond), IAs are most
suitable for consumers with longer-
term financial goals, such as retire-
ment. IAs are not meant for short-
term purposes.
However, knowing that consumers
may occasionally wish to tap their IAs,
most IA issuers allow some sort of
annual withdrawal, up to a set
amount, without assessing withdrawal
charges. But it is more beneficial to
leave your IA intact for the contract
term specified, since the interest you
earn is tax-deferred until withdrawal.
No Up-Front Sales Charge
Sold in amounts as little as $5,000
and offered by some of the most high-
ly ranked and financially sound com-
panies in the insurance industry, IAs
also are unique because purchasers do
not pay any up-front sales charge.
When you buy an IA, 100 percent of
your principal goes directly into the
IA. Your insurance agent is compen-
sated solely by the issuing insurance
company.
If you're interested in diversifying
your assets with minimal risk and guar-
anteed return, find an insurance agent
with good recommendations and a
willingness to
take the time
to fully
explain the
features, bene-
fits and appro-
priateness of
IAs. You may
also wish to
find an agent
who carries
the designa-
tion Certified
A n n u i t y
Advisor®, a
s p e c i a l i z e d
education pro-
gram.
Annuities continued from pg. 11
