Jack, 39, was giving co-worker Susan, 48, a lift home from the terminal when they were killed by a drunk driver who crossed the freeway median and plowed into his pickup.

Jack's wife, Jill, and three young children were soon to receive another shock: Because Jack, a trucker who had been in excellent health, hadn't prepared a will, Jill was free to use only one-third of his assets to support herself and her children. The other two-thirds became the property of the children, in trust until they reached 18. Jill would be allowed to use some of the money for the children's support, but only after applying to their court-appointed trustee for it. And she would have to provide the court with proof that the funds were truly being used for the children's care.

Susan had no children and lived in a long-term relationship with Alex, her "significant other." She was a dispatcher and had been the couple's primary wage earner. The house and most of their other assets were in her name alone, although she and Alex pooled their resources. Susan had two sisters she had not seen in years because they disapproved of her living arrangements.

Susan didn't leave a will either. It had never occurred to her that she needed one, since she was in good health and had no children. When it came time to settle her affairs, everything was divided between her sisters. Alex received nothing - and when the sisters put the house up for sale, Alex had to move from their comfortable home to a small apartment.

Plan Ahead. Now.

No one likes to think about death. But despite medical advances and lengthening longevity, so far no one has lived forever. All of us will die eventually - and when we do, we will leave behind family, friends and possessions. It will be up to someone to dispose of your possessions.

But what will happen if the person left with this task does not know whom you would want to receive a treasured heirloom or the contents of your bank account? And what if the law says that someone other than those you would have wanted to inherit your property is entitled to receive all, or a share, of it? And that the person you would have wanted to receive it may have nothing? Worse, what if you die prematurely and leave minor children? Who will care for them? Who will decide how funds left for their care should be invested and distributed?

Even if you do not feel that you own very much property and even if you have no dependents, you should have a will.

Wills are the Way

Even a simple will allows you to:

• Distribute your property as you wish;
  
• Provide security and support for loved ones, according to their individual needs;
  
• Choose the person you want to carry out your wishes and settle your affairs;
  
• Appoint a guardian for minor children;
  
• Minimize taxes and administrative costs; and
  
• Leave a legacy to programs, causes and groups you support.
  

Without a will, state law will make these important decisions. You cannot make any special provisions for family members, friends or favorite charities. And, not having a will can cause lengthy and expensive delays in settling your affairs, causing an added burden for those you wanted to take care of.

What about a living trust?

Living trusts are sometimes used as a substitute for, or together with, a will. In some states people use them to avoid probate. A living trust can ensure that your financial affairs will be managed by a person or bank that you have chosen yourself, if you ever become unable to handle them yourself. However, a living trust will not necessarily reduce estate taxes. Even if you have a living trust, you should also have a will to transfer any property to your living trust that was either deliberately or inadvertently left out so it can be distributed with the rest of your assets. To determine if a living trust, in addition to a will, would be appropriate for you, consult an attorney or financial adviser.

How to write a will

For your will to be valid it must be written in proper, precise language and you must follow the correct procedures (which vary from state to state) when you sign it. Having an attorney draft your will and supervise its signing will help avoid misinterpretation of your intentions, a will contest or your will being declared invalid. A knowledgeable attorney may also be able to help you reduce taxes on your estate, leaving more for your family and favorite organizations.

Before seeing an attorney, there are several things you can do to reduce the time and cost involved in preparing your will:

• Decide what you'd like to accomplish, such as naming a guardian for minor or disabled children and providing for financial security of your family. Consider each person and objective separately;
  
• Make a list of all relatives, friends and charitable organizations you' like to remember, including full names and addresses;
  
• Prepare an inventory of your assets and a complete list of your debts. Don't forget insurance policies and retirement plans. Give a full description of each item (or attach a copy of the document itself) its current value, original cost, current location and how you hold title to each item - separately, jointly or as community property;
  
• List and note the location of all personal documents, such as birth and marriage certificates, insurance policies, mortgages and deeds;
  
• Select a personal representative who will be responsible for gathering your assets, settling your debts, preparing tax returns and distributing your estate. Be sure the person you select is capable of performing these duties and is willing to do so. Select an alternate representative, too, in case your first choice is unable or unwilling to perform the tasks when the time comes.

Keep your will current and accessible

An out-of date-will may cause even more problems than not having a will at all, so review your will periodically. Major life milestones such as births, deaths, marriage, divorce and other changes affecting you, your family and other beneficiaries, can make it necessary to rewrite or amend your will. So can changes in your financial situation or in the tax laws.

Be sure that the person likely to be looking for your will knows where to find it! Some states seal safe deposit boxes upon the death of the owner, so that may not be the best place to keep it. Put a copy of your will with your other important documents, though, with a note telling where the original can be found. It is also wise to tell a trusted friend or relative where you keep your will and other important documents.

It is not a good idea to include burial or cremation instructions in your will because the will may not be reviewed until after the funeral has taken place. Instead, make sure that your spouse, children (all of them) and other family members are aware of your wishes regarding burial or cremation. Also tell them whether and what kind of memorial service you would want (or that you may not want a memorial service at all).

It's a good idea to prepare written instructions and make sure your loved ones know where they are. Many people give copies of these instructions to their clergy person and personal physician. You may also consider making advance arrangements through a local funeral home or organizations such as The Neptune Society.

Bequests

Bequests, or legacies to people and organizations, can be included in either a will or living trust. There are four main ways to leave a bequest:

• You can designate a particular beneficiary to receive a certain sum of money or percentage of your estate, a "general bequest";
  
• A "specific bequest" gives a specific item, such as an heirloom or piece of real estate;
  
• "Residuary bequests" frequently dispose of the majority of one's estate: it means that everything left after all debts, taxes, expenses and the general and specific bequests are paid is distributed to the beneficiaries you have named. Frequently, the residuary estate is divided by percentages.
  
• If you would like to designate one or more beneficiaries to receive a legacy only if a primary beneficiary dies before you ("to Bob if Mary dies before I do"), or is otherwise unable to inherit, you may leave a "contingent bequest."

You can provide for the bequests to be distributed immediately, or at a later date (a "deferred bequest"). Generally, deferred bequests involve a trust that pays income to someone for a period of time, after which the trust principal is distributed to the contingent beneficiary.

Charitable bequests

If you support any charitable organizations, you may want to continue your contributions through a charitable bequest. With proper planning, you may even be able to leave a significant legacy to your community without jeopardizing the financial security of your family and other people you wish to remember.

Outright bequests are the most popular method of making charitable gifts by will. The bequest may be a percentage of your estate, a dollar amount or a specific item. A percentage bequest is the best arrangement for many people, because it protects other beneficiaries against a possible shrinkage in the estate's value. But some people prefer to leave the remainder of their estate to charity after provisions have been made for all their other beneficiaries. You can even ensure that your heirs receive lifetime income as you also make a gift to charity. "Life income arrangements" may even increase your beneficiaries' share of the estate!

Example: Jane Donor specifies in her will that $200,000 be placed in a charitable remainder trust which will pay her sister $10,000 per year for life. When the sister dies, the assets remaining in the trust will be distributed to Jane Donor's favorite charity. By doing this, Jane provides a secure income for her sister and provides a lasting gift to her community.

Help Your Family Decide

Just as important as preparing a will is helping your family and loved ones consider those difficult decisions that will have to be made if you should ever become seriously ill or injured.

Although the laws vary from state to state, in general you should take care to complete two simple but important documents: a "durable power of attorney for health care" and a "living will." These are the documents that specify the kind of care you wish to receive; under what circumstances you should be kept on life support; and whether you are willing to be an organ donor. You should carry copies with you in case you become ill on the road and need to be hospitalized.

If you have not yet prepared your will and medical care instructions, plan to do so soon. Consider setting a target date by which you will meet with an attorney and a goal for when you will have these projects completed. These are not easy matters to contemplate, but by taking these important steps, you will be doing your family and friends an enormous service.

Most bar associations have referral services and will refer to an attorney who is knowledgeable about your needs. Also, there are estate planning councils made up of attorneys, accountants, financial planners, etc. who specialize in estate planning. These are usually organized by geographic area. If you can't locate one, the local bar association should be able to help find them.