Thinking about what will happen to your assets after you pass on is not only uncomfortable, but a topic that is not often thought about at all. However, ignoring or avoiding it can create problems for unexpecting family members after you’re gone. A shocking 54% of Americans do not have a formal will, or a will of any kind, that details how their estates and assets will be handled.
The reality, though, is that life is unpredictable. It’s never too early, or too late, to sit down and create a will. From estate planning to financial assets, even pets and sentimental belongings, here are five reasons why you should draft your will now.
Avoid Unsatisfactory Outcomes
A common misconception that a will is unnecessary is that all of your assets will be distributed to family. And though every state law surrounding this topic generally does leave everything to family, it may not turn out the way you intended. If, for example, you wanted it to be split up certain ways, or possibly wanted something to go to a non-family member, without a will, there is no control. This also has the potential to cause arguments and tension within the family, especially in the case of divorce, re-marriage or even half-children. Creating a detailed will of how you want your assets dispersed can help prevent these stressors.
Name a Guardian for Children
Another critical reason to write a will is your children, especially those not old enough to legally support themselves. Of course, you want to ensure that your children are well taken care of in the case that you can no longer care for them. A will allows you to nominate guardians for your children after passing. If this is not determined with a will, the decision can unfortunately be left up to the courts. And for many parents, the last thing they want is for a stranger to make a big, life-changing decision for their children. This is especially important for those who do not have other family members to depend on.
Ensure Care and Maintenance for Pets
Though most people consider their pets part of their family, the reality is that the law considers them your property. Because of this, without a will and a plan for who you want to care for them after you are gone, there is a chance that they will either have no care or go to someone that you would not otherwise trust. And though you cannot leave money to your pets, you can allocate the money to care for them to a trusted caregiver. A will can guarantee that in case of your passing, your furry friend will remain with loved ones, rather than end up at a shelter.
Address Tax Ramifications
Taxes are never a fun subject, but unfortunately they are necessary. Without a will, there is a chance that your heirs can get stuck with the responsibility of dealing with your taxes, or that it will go through the courts, possibly preventing your family from inheriting anything. Also, if you would like to donate any of your funds to charities after passing, or give gifts to your heirs that are not taxable, a will can ensure that this will happen.
Provide Your Loved Ones Peace of Mind
Ultimately, a will is not just for your benefit, but your loved ones as well. They are the ones, after all, who are most affected by your decision to draw up this important document. Not only does this give them some peace during the stressful and grieving time after your passing, but it provides them with guidance regarding your wishes. Also, during times of grief, families can get tense. But with a will in hand, it is much less likely for arguments and disagreements to surface.
Source: Real Simple
