How to draw up a will correctly and what are the tax consequences of this?

[Lily]

first list your assets and decide who will inherit them. Appoint a trustworthy executor to manage your estate. If you have minor children, designate guardians. Clearly state specific bequests and ensure your will is signed and witnessed by two non-beneficiaries. Regularly review and update it, consulting an estate planning attorney for compliance.

Tax consequences include potential federal estate taxes if your estate exceeds the exemption limit, with some states also imposing taxes. Beneficiaries typically do not pay income tax on inherited assets, but inherited retirement account distributions may be taxable. Proper planning helps minimize tax liabilities.