Taking care of your finances includes ensuring that you have a will in place. About 55% of people in the U.S die without an estate plan or a will in place. About 34% of those that pass away without a will thought about it but got no further than talking to friends or family about it. Writing a will is a simple way to ensure that your finances are managed the way you want them to be after you are no longer here.
A Will Not Only Distributes Your Estate
For many people thinking about a will conjures up thoughts about their finances. While it is true a will has a lot to do with the future of your finances, that is not the only reason you need to have a will in place. A will can be used to designate things like who will get guardianship of your minor children, how your personal effects will be divided among your beneficiaries, and even who will raise your cat if you have one.
Your last will and testament provides direction to your beneficiaries about your final wishes and can contain a wide range of actions that you wished carried out on your behalf after you are gone. It can contain as much or as little detail as you want it to contain. For example, if you are married and you want your spouse to inherit everything, there are forms that allow you to designate how much each of your beneficiaries will receive. You simply state you want 100% of your estate to go to your spouse.
Having a will in place ensures that there is no confusion in how you want your estate handled after your death. Additionally, a well structured will can help to keep your beneficiaries from having to deal with court action and long probates.
Follow the Rules
Before you sit down to write your will check out the laws in your state when it comes to wills and maintaining validity. For example, scribbling out your wishes and tucking it away in a draw may not be sufficient. You may have to have one or two witnesses to the instrument to ensure that your will is considered a valid instrument. Do a little research to make sure you are following the rules.
Decide Who Will Oversee Your Will
You can choose the person that will ensure your finances are managed as you see fit by naming an executor in your will. The executor is the person responsible for carrying out your wishes, paying off debts, taking inventory of your goods, and ensuring your beneficiaries are taken care of as outlined in your will.
Name Your Beneficiaries
As you write your will be sure to consider who you want to benefit from your finances and personal property after you are gone. You can bequest gifts to your favorite charities in your will. You have the power to name anyone that you want to name in your will. If you want to share some of your finances with your hairdresser, your Alma Mater, whomever or whatever, that is entirely up to you.
Gather a List of Your Assets
Make a list of all of your real property. Don’t forget to include things like your car, your home, your boat, and other real property. You may want to leave your grandfathers watch that was handed down to you to a specific beneficiary, list that as well. Anything that you want to have a say in who gets it after you are gone should be included in your will.
Should You Have an Attorney Draw Up Your Will>?
There will come a point in the process where you may ask yourself if you need an attorney to manage writing a will and to help with estate planning. The fact is it all depends on the size of your estate and the complexities of the estate as to whether you should consider hiring an attorney to manage your documents. One of the reasons that people choose to hire an attorney for estate planning is to keep tax responsibility down for their beneficiaries. The IRS collected roughly $3.4 trillion in 2011 alone, many people feel like they do not want to “donate” more tax money after they are gone.
If writing a will seems daunting, contact an attorney that can help you arrange your finances, save on some estate tax for your family, and take the stress out of the process. In any case, get your will done.
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