Many people refrain from planning their own will because writing a will serves as a reminder of their eventual demise. According to research, among every five Americans above 45 years of age, two do not have a will. However, living in this state of denial can be potentially dangerous for you and your loved ones. If you create your own will, you will be securing their future pragmatically and efficiently. By planning it, you can remove the unnecessary stress from the equation.
What You Should Know About Wills
You may have a vague idea of a will being the document that contains instructions about asset divisions. While it is right to an extent, you need to know the legal terms before writing your will.
The person who makes the will (you in this case) is called the testator. You will appoint an executor to handle your estate. Choosing a suitable person for this responsibility is critical because you will trust them with the task of distributing your property. An executor can be someone you know, but appointing an attorney is more tactical. It is because they will ensure that all provisions of your will are lawful and appropriately executed. You can also appoint joint executors if you’d like. People who have a child executor tend to select an attorney to advise the child.
The belongings that your executor will administer are your estate. These can entail any possession, from giant mansions to small jewelry pieces. You can either choose to leave the task of distribution to a person you trust or make bequests. These are the instructions you write while leaving specific assets for different people. For instance, you may want your daughter to inherit a valuable painting and your son to receive your luxury watch. Making bequests lets you proceed with such allocations.
What Will Happen if You Don’t Create Your Will?
Thousands of people die without pre-written wills. While the families of some manage the tasks peacefully, others find grave problems awaiting them.
If you die without a will, the law will declare you “interstate.” It means that your belongings or estate will then be under the supervision of the law, and the authorities will decide who inherits what. The procedure of transferring your assets to legal heirs is termed “probate.” An administrator, appointed by the judge, will proceed with the inheritance.
The administrator would not be familiar with your family or its dynamics. If you have tarnished relations with any of your kids, it won’t amount to anything for the administrator. They won’t be required to comply with your family or your wishes in the inheritance procedure, which is why not having a will can be extremely risky.
Additionally, when your heirs inherit the estate, they will also have to pay some inheritance tax on the properties and money. Creating your will beforehand gives you ample opportunities to have a lawyer overlook the taxation. Some of the duties may be avoidable, and not making a will in your life can burden your children with unnecessary taxation.