A will is a formal declaration of the distribution of your estate upon your death. There is a common misconception that wills are only necessary for the affluent or people with complicated estates. However, this isn’t true. Everyone should prepare a will.
Preparing a will could be a smart move for several reasons. Here’s why:
1. Save your loved ones from stress
If you die without a will, the legal process of distributing your assets may become quite complicated. The court will appoint someone to manage your estate on your behalf, which can lead to confusion and disputes among your family members. But with a will, you can allocate who will manage your estate, making the process much smoother for the beneficiaries. Moreover, your family members will also save a lot of money along the way.
So if you want to ensure that your loved ones do not have to deal with unnecessary stress and complications after you are gone, consider creating a will. It is one of the best things you can do to take care of your family and give them peace of mind during a difficult time. To better understand, consider reading what is probate and how preparing a will makes it a breeze.
2. Appoint a guardian for your children
Like most people, you are probably a loving parent who wants the best for your children. But what would become of your children if the worst happened to you suddenly? Who would take care of them? It is an emotional question, but it needs to be addressed.
According to a credible survey, over 60% of American parents with minor children do not have a will. This implies that in the event of their demise, their children’s future would be left to a court-appointed guardian. That is a scary thought!
Creating a will enables you to name a guardian for your children. That way, you can ensure your children are cared for by someone you trust.
3. taking care of your pets
We all love our furry friends, don’t we? They are always there to greet us with wagging tails and wet noses. They are the perfect snuggle buddies on those cold, rainy days. But have you ever thought about what might happen to your pets if something were to happen to you? Again coming up with a well-thought will address this issue.
You can name a trusted caregiver who will take care of your pets after you are gone. This person will be responsible for providing your furry friends with all the love and care they need, including feeding, veterinary care, and plenty of snuggles.
4. Minimizing estate taxes
When a person dies without a will, their assets are distributed according to the laws of their state. This process is called intestate succession. In the US, the federal estate tax applies to estates with more than $11.7 million gross value. The tax rate starts at 18% and can increase to 40%. So, if you’re rich and you die without a will, your estate could potentially owe a significant amount of estate tax.
However, you can reduce the tax burden by preparing a will. The strategies you should use to minimize estate taxes will depend on your individual circumstances, such as the size of your estate and the number of beneficiaries. To be on the safe side, consider working with an experienced estate planning attorney who can help you develop a comprehensive plan to minimize estate tax.
5. Specifying a property manager
As a loving parent, you want to ensure your children are cared for both now and in the future. Thus, if you plan on leaving property to your children, it is important to think about who will manage it on their behalf. That is why you should specify the name of a property manager.
By naming a property manager in your will, you can rest easy knowing your children’s property will be managed according to your specific instructions. This person will be responsible for overseeing the property and ensuring it is distributed to your children as you intended.
To choose the right property manager, look for someone who is financially responsible and has experience managing assets. Ideally, your property manager should have a background in finance. Do not rush to give this responsibility to any Uncle Bob. Take your time and conduct research. After all, It is an important decision that will impact your children’s financial well-being.
6. Protecting business interests
Picture this; you have spent years building a successful business from the ground up. You have poured your heart and soul into every aspect, from product development to marketing strategies. You hired a team of dedicated employees who share your vision and are committed to helping your business grow.
But then, one day, the unthinkable happens. You pass away unexpectedly, leaving your family and your employees in a state of shock and grief. Without a will, the future of your business is uncertain. Your family members may not have the skills or experience necessary to run the business, and your employees may worry about their job security.
This is where a will comes in. It will empower you to specifically addresses your business interests. You can provide clear guidelines on how your business should be managed after your death. You can even designate a specific person or entity to take over the management of your business and ensure that it continues to thrive. Moreover, drafting a will also minimizes the potential for legal disputes and conflicts among your family members, partners, or other stakeholders.
Conclusion
While thinking about death might not be the most pleasant experience, it is crucial to plan for its impact. Ignoring it completely can leave you and your family unprepared for the unexpected. After reading the reasons covered in this blog, you must start to consider preparing a will as soon as possible.
