When You Die, Exactly What Does a Will do?
I understand it might sound easy, however there are things a Will does and certain things it can not do. Most people do not have a will and do not even want to talk about it given that it connects to death. A lot of individuals do not even have life insurance coverage, either. I had a boss that was speaking to his accountant one time, “If I die-” started my manager, and his accounting professional stated, “There is no “IF”, its just “WHEN”. We all will pass away and it would be nice to have a will to help your household decide what to do with your money and belongings.
Why do you need a will? Would you rather probate courts decide the fate of your children? The court decides where the kids are sent for foster care. That must be enough to frighten you from your shoes. The court will likewise decide exactly what happens to your possessions. Yes, all your things and money. So you might have money and a nice home, then its all gone and the kids are sent to the state home.
I know, it sounds harsh. So exactly what can a will provide for me?
First, a will can show where your assets and residential or commercial property go. You can also name a guardian for your kids and their residential or commercial property. You can likewise name an executor to administer the will. This administrator can be given powers and settlement for looking after your estate.
However here’s the challenging part– a will cannot override anything with a named beneficiary. For instance, your life insurance has a beneficiary that was established at the time you wrote the policy. Also, a will cannot nullify the regards to a trust you’ve developed.
So what should you do? Inventory your assets that will travel through the will. Like inspecting accounts, CD’s, stocks, bonds, real estate, etc. These are called probate assets. Nonprobate properties would consist of things like your life insurance. These products have actually called recipients.
Make a list of your beneficiaries and choose what you want them to have. If you have kids from your current marriage, then the choice would probably be very easy– offer the products to your partner. If you have kids from a previous marital relationship, strategy thoroughly and note them along with their relationship so the executor will have no questions and will hopefully restrict anybody objecting to the will.
I hope this provided you some idea regarding why a will is an important planning tool not for you, but for your family. You do not make a will on your own, as you will be dead, you make one for your survivors.