Barbara G. Wells, PharmD, FASHP, FCCP
CPNP Foundation President
My husband and I recently updated our will, and I timidly admit that we were way past due in doing that. We have recently moved to a new state, and we (and our children) are in a much different financial situation than we were when we made our last will. We all should have a valid will to be sure we are doing all that we can to protect our family and to be sure that our assets are distributed in the way we desire after our departure from this life.
Since becoming president of the CPNP Foundation, I have learned of a few CPNP members who have made arrangements in their wills for planned gifts to the Foundation or who have plans to do so, and I expect there are quite a few others of whom I am unaware as yet. I am thrilled to learn of these plans, as I know how important such gifts can be in allowing the Foundation to achieve its goals to advance access to evidence-based care for individuals living with psychiatric and neurologic disorders. If you have made arrangements in your will to leave a gift to the CPNP Foundation, I would very much appreciate your contacting me to let me know about it (bwellspharm@gmail.com). Probably the most important first step in making a major gift during our lifetime or a planned gift after our death is to make a valid will and to be sure that it is regularly reviewed with your attorney and/or financial advisor.
We have all read about notorious court battles fought over the validity of wills, so the language in the will is very important, as is the ritual for signing it. Since each state has its own requirements for a valid will, if you move to another state, you will usually need to have your will redone.
Are you aware that wills often do not control the distribution of all assets? For example, life insurance, pensions, IRAs, and 401(k)s, for which you have already named a beneficiary are distributed directly to the beneficiary upon your death. Also, property owned jointly with rights of survivorship generally goes to the surviving joint owner. If you do not know how your assets are owned and how they will pass to your heirs, your estate could incur additional taxes and administrative costs.
You should give careful consideration to selection of your executor. You should understand the duties and responsibilities of your executor, so you can match these to his or her knowledge, abilities, and general health.
Many people create a living trust in the language of their will. Generally, the more assets you have, the greater the potential benefit from creating a living trust.
If you have minor children, your will should specify a guardian for each child and a custodian for each child’s property.
In summary, you need to have a valid will regardless of your age and regardless of the size of your estate. Your will should be prepared (and updated) by your attorney. Based on my own recent experience, I can assure you that it is a painless process and a critical one to be sure that your family, friends, and cherished organizations and charities are benefitted after your lifetime. If you already have a valid will and wish to add a bequest to benefit the CPNP Foundation or any other organization, you and your attorney can make that happen by adding a simple codicil or amendment.
The Foundation Board of Directors will always encourage you to seek appropriate, independent, professional advice and counsel about any gift made to the Foundation. Such a professional can advise you about tax liability, estate planning, and comprehensive investment planning. At the present time, the Foundation generally accepts only cash and stock gifts, but other forms of gifts can be considered on a case-by-case basis.