Why Preparing a Will is Essential for Your Future and Loved Ones
Creating a last will and testament is the first step in creating an estate plan – a critical planning tool to ensure that your wishes are honored and that your loved ones are cared for after your death. Despite the importance, many people put off making a will, either because they don’t believe they need one, or don’t want to think about their mortality. However, having a will is essential regardless of your age, well-being, Financial health, or family dynamics.
1. Name Beneficiaries
Without a will, your assets will be divided according to the laws of intestacy in your State – don’t rely on the State’s default laws related to distribution. Relying on these laws will rarely result in a distribution in the manner you’d want. Who will get everything? More importantly, who won’t?
2. Determine Who Will be in Charge
In your will, you can appoint a Personal Representative (also known as an Executor) who will be responsible for managing your assets, opening and administering your probate estate, filing your final tax returns (as applicable), paying off debts, and distributing assets to ensure that your wishes are carried out.
3. Saves Time and Stress for your Family Members
By creating this document, you have the opportunity to provide clearly documented wishes that allow your family peace of mind. A will significantly reduces the stress and anxiety your surviving loved ones may otherwise face while mourning their loss.
4. Avoid Family Disputes
By providing explicit instructions, with your wishes clearly stated, there is far less room for misunderstandings or disagreements amongst your family and beneficiaries. Family dynamics are fluid and ever changing – having a will can include contingencies for unforeseen events and minimize family conflict.
5. Appoint the Guardian of your Minor Children
This is the document where you can name a guardian to care for your child in the event of your passing. Without a will, the court will decide who is granted physical custody of your children, without considering your wishes and desires.
6. Who Will Manage the Assets if your Beneficiaries are Minors
Children cannot inherit funds outright until they reach the age of majority. If you would like to provide for any minor children in your will, it is imperative that you appoint a trustee to ensure that someone responsible is managing that child’s inheritance until they are old enough to handle it themselves. This person has a fiduciary duty to act in the best interest of the minor child and is required to prioritize their needs, which is an added layer of protection.
7. Funeral, Cremation, Memorial Instructions
Whether you have preferences for a traditional burial, a cremation, a religious ceremony, a celebration of life, a memorial service – or none of the above. Leaving instructions in your estate planning documents reduces the stress and burden on your loved ones and ensures your personal values, beliefs and life will be honored as you hoped it would be.
8. Caretaker for Your Pets
For many people, pets are a part of the family. This document allows you to make provisions for the care and custody of your pets after death. You can designate a caretaker, allocate funds for their care, and ensure that your pet is in good hands.
9. Opportunity to Assess, Consolidate and Inventory your Assets
In preparing your Last will and Testament, it is critical to assess and inventory all of your assets to ensure they are all accounted for. In inventorying your assets, you will gain a clear understanding of everything you own, including real estate, bank accounts, and employer benefits that you might otherwise not realize or understand.
10. Peace of Mind
Lastly, the most compelling reason to create a will is to give yourself peace of mind knowing your affairs are in order and your loved ones will have a map outlining your wishes to assist them during a difficult time of grieving.
Clearly, establishing a will is important to ensure that your belongings, property, and financial assets are distributed to the people you care about most. There are common missteps people make in attempting to prepare a will themselves that can truly impede the estate administration process and can prevent your loved ones from proceeding as you may have intended – to avoid any pitfalls, contact an estates and trusts attorney.
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