Having a will is one of the best things you can do for yourself, your kids, and the entire family. It can legally protect your investment assets, spouse, and children. It can also spell out clearly how you would like things to be handled once you die. Though every person’s situation may vary, here are the reasons for creating a living will is important.
1. Decide who will inherit your estate
Unless you create a will, you will definitely die ‘interstate,’ and that means you will not be in a position to determine who inherits your assets. It is the rules of interstate that will determine who should inherit your assets and who shouldn’t. Friends, unmarried partners, charities or step-children won’t benefit from your assets unless they are named in your will.
2. Appoint the individuals you trust as your executors to handle your estate after your death
Appointing the right executors means that you can prevent worry and uncertainty in your family after death. In case you die, and you had not created a will, administrators will be appointed on the basis of first come first serve. If you own valuable assets, it is natural that you would wish the executors to be people you fully trust and can successfully handle the task at hand.
3. Specify the guardians to take care of your kids
In case you have kids under the age of eighteen years, you can use your will to name the specific guardians to take care of them in case you die, and they are still underage. Actually, you can eliminate the need for courts particularly during the distressing time for your kids. You should make sure that the guardians you appoint have the same values as you do.
4. Determine what exactly will happen during your funeral
The process of creating a will offers you a chance to offer clear instructions for your appointed executors. You can state whether you would like to be cremated or buried. You can even specify the music to be played and other details to be addressed during your burial. You can either state these wishes briefly or elaborate them as much as you wish.
5. Make gifts and donations
One of the good reasons to create a will is to make gifts and donations. This will offer you a chance to have a legacy that lives on and clearly reflects your interests and values. Besides, some gifts and donations to a certain level are exempted from tax. That means you will be improving the value of your assets for your beneficiaries and heirs. It is recommended to check the most current laws to understand the most up-to-date tax exclusions associated with gifts.
Once you create your will, consider keeping it somewhere safe. You can either store it at home with other valuable documents in a fireproof box. Make sure that the individuals you appointed as executors know about the will and where to find it.