The process of creating a will is seen as a way of preparing and planning for your death. It is a grim and challenging matter since it involves death. As a result, will preparation is one of the least worries that many people have in their lifetime. It is very common to find people who died before they have prepared a will. However, people need to understand that death is a mandatory stage of life that we must all pass through. By developing a will, you can help in promoting the well-being of your family members in your time of death. As an owner of assets and properties, you are the only suitable person to divide your net worth among the beneficiaries. Some people wonder what the best time to start preparing a will is. Some signals should alert you that it is time to start making for a will. Also, the will should be updated at least every five years to ensure that it meets the most recent needs. Some of the signals that one can look out for include marriage, kids, business, home, mortality rate, among others.
Having a will should be a necessity today. There is no need to leave the disbursement of your property under the administration of a government entity whereas you could have divided everything in accordance with your wishes. Creating a will is therefore important to every person no matter your net worth. A will is a legal document that determines how a deceased property will be divided among the beneficiaries. There is no need to leave your loved ones battling in court over your property. So, why is a will important? Here we will look at the advantages of having a will prepared for your family.
03. Plan for your needs
Many people think that a will is only important when they die. What you need to realize is that a will helps you to protect you and your assets even when alive. In case you become incapacitated and cannot make coherent decisions, a will enables you to protect your assets. You need to understand that in case you fall ill and are no longer able to work, there will be some sort of insurance to depend on for the rest of their life. A will helps you also to appoint a legal officer or a medical practitioner who can make financial and medical decisions on your behalf in case you become incapacitated. In case one day you are unable to speak or to make decisions, there needs to be someone close to you who will do it on your behalf.
02. Distribute your wealth according to your wishes
If at the point of your death you do not have a will showing how you’d like your net worth to be subdivided, the government will take over the role of deciding how the assets will be divided among the beneficiaries. With proper documentation, your family members will not go through lengthy court proceedings and frustrations associated with such procedures as they seek to divide your property. With a will, every family member will know what belongs to them. This is a position which will help you to leave your family in cohesion even after you are gone. You should ensure that the will is reviewed regularly and the beneficiaries of your investments updated. With a will, everything that you own will be divided or transferred according to your wishes.
03. Avoid transfer tax
If you have accumulated substantial wealth and you have plans of transferring that wealth to other family members and loved ones at the point of your death, a well-designed will must help you to reduce the tax associated with the transfer of assets. Many governments have limits around which free transfers can be done. A will created early enough will be designed in a manner that minimizes the taxes involved in transfers.
For people who would like to be remembered after their death, it is common to leave part of their wealth to go into philanthropic initiatives. Many such people established family foundations and charity plans which will be used to meet their intended goals. With a will, you will be in a position to accomplish your after-life goals. You can decide to create a charitable trust, a family foundation or a donor-advised fund with the intention of supporting worthy initiatives. If you have plans of leaving a legacy after you are departed, the best thing to do is to start preparing your will now.
05. Protect family wealth
It is common for people with high net worth to become susceptible to unnecessary lawsuits from people who would like to capitalize on their wealth. With a will, you can protect your family’s wealth by removing your name from the properties and assets you own and placing them under legally-protected identities. For instance, you can put up a trust or an unlimited liability entity.
06. Prepare your family for future wealth
Preservation of family values is something that many people take seriously. You’ll find different families with unique wealth transfer goals that will help to maintain generational values. Many successful families were trying to prepare the younger generation for the responsibilities they will have in the future. You can use your will to talk to you or family members on the property and assets you own, and how you would prefer them to manage them when you are gone.
07. Appoint guardian
With a will, one can authoritatively say who will take over the role of guarding their children after their death. If you have a young family, it is essential to have someone who can protect and care for them when you are not there. With a will, you’ll have attained the goal of living your children in safe hands in the manner you would have wished for.
For tips on how to facilitate a good will creation consult CNG Law Wills Sunshine Coast