A will is a document with concise instructions on what happens to your finance and assets even after you die. It ensures that your possessions are transferred per your intentions. While contemplating your mortality may not be enjoyable, making a will gives you and your loved ones peace of mind that your estate will go to the intended heirs. To safeguard your legacy, read on and learn how to plan a will.
Understand the Importance of a Will
Only one in three Americans has a will or other estate planning document. This means that most adults in the U.S. need to plan how their assets and finances will be shared in case they pass away. If you don’t have a will, state law mandates the probate court to appoint a property administrator and guardians for children. Your children and property could end up in the hands of people you don’t trust. You wouldn’t want that to happen, would you?
Make a Decision on What to Include in Your Will
Gather the documentation for your house, life insurance policies, bank accounts, and retirement accounts. Many young people believe they don’t own enough assets to necessitate leaving a will. 78% of Millennials ( born from 1980 to 1996) and 64% of Generation Xers ( 1965 -1980) don’t have a will. That said, record your belongings and determine what to include in the will. Do you want to give someone a pet or a collection of books? Add it to your will. When it comes time to distribute your assets, this will assist your executor and spare your family unneeded worry.
Figure Out Who Gets What
Who do you want to inherit your car? Who would you entrust your kids to? Think about your partner, children, and relatives. Write down the names of the people you want to inherit your assets and determine how to split the estate. For instance, you can leave your children the same amount or equal portions of your estate. Alternatively, you can give some of your finance to charity.
Name an Executor for Your Will
The executor is the person you name in your will to fulfill your final desires. They are responsible for distributing your estate, dealing with unusual bequests like a pet, and reporting to the probate court. An ideal executor should be responsible, ethical, and not easily swayed by emotional or powerful family members. A mature child, a trusted friend, or an attorney would be a good choice. Make it clear in your will the person you intend to execute your will – don’t assume your loved ones or court will act accordingly
Review and Update Your Will
You can change your will as your life changes. For instance, you might move to a different state, have more children, adopt a child, get a divorce, or remarry. However, you must be in a good mental capacity to make the necessary changes. For example, if you develop a mental condition like dementia that affects your ability to make proper judgments, any changes will be invalid. About 6.5 million Americans above 65 have Alzheimer’s. This highlights how crucial it is to draft a will as early as possible.
One of the last acts of love you can perform for your loved ones is to create a will. You give them an easy time and peace of mind to mourn you. Ensure you work with an experienced estate planning lawyer to draft an effective will, frequently examine your assets and finance, and make the required adjustments to ensure your plan matches your objectives. Write a will today. You and your loved ones will be very grateful that you did.