It should come as no surprise that when you die, your family is responsible for settling your estate. If you’re like most people, the thought of writing a will may seem morbid, but it is very beneficial to understand why it is important to have a will.
Without a will and executor listed, the state will be responsible for deciding on how your assets are distributed. Not all of your assets may be automatically transferred to your family, and the courts can take a long time to assess and distribute assets. This can create an unnecessary burden on your estate and create additional stress for your family.
While this short blog post is not written by an attorney, it does illustrate a few key points on the benefits of writing a will.
Make sure the Right People Inherit Your Assets
One of the benefits of writing a will is that it ensures that the people you want to inherit your assets are indeed the ones who do. Without a will, the people or organizations you want to benefit from inheriting your assets may not receive them. This is especially important when assets carry a sentimental or monetary value. If some of your assets are likely to cause conflict among surviving family members, a will ensures that the people you want to leave an asset to is the rightful heir.
Provide Future Generations with Security
Depending on the age of your children when you pass away, a will protects assets for their future. Within your will, you can list the guardians you want to assume responsibility for your children. Without a will, the state will be left to determine whose custody your children are placed in. A trust can be created so that when your children turn of age, they inherit your savings. This can provide your children with financial security for the future as they enter adulthood.
Avoid Legal Challenges
Without a will, a probate court will be left to decide who receives your assets. This can cause many legal challenges for your family that a will eliminates from happening. A will states who you want to receive your assets and what they are entitled to receive.
Lower the Cost Burden
Estate taxes and other legal fees can quickly add up and reduce the value of the inheritance you leave behind for your family. By writing a will and planning ahead, you can reduce these expenses. The total value of the assets you give away to family members or charities will help to reduce your estate taxes and increase the value of your beneficiaries’ inheritance.
Decide Who Will Handle the Affairs of Your Estate
An important part of any will is making sure that you choose an executor you can trust to handle your affairs. The executor will be responsible for settling debts, canceling credit cards, notifying the bank, and other establishments of your death, ensuring the distribution of assets and many other tasks. The person should be someone who is honest, trustworthy, and organized. Without an executor, the state will be responsible for overseeing this process, which can delay the time it takes for your assets to be distributed.
