Importance of Will – by Syed Nishat
10 plus reasons to a have a Will as soon as possible – by Syed Nishat
Estate Planning is one of the most important but most neglected aspects for investors who may think that they don’t need to be concerned about it yet. As recent events, including the COVID-19 pandemic, have shown, life is uncertain. Will is an important planning tools for Estate Planning. A Will is a legal document that outlines your wishes for the distribution of your assets and the care of minor children after your death. Here are 10 plus reasons for creating a Will as soon as possible:
1) Custody of your children: A Will spells out who will take care of your minor children in an event anything to happens to you. Without a Will the custody of your children will be decided by US Government.
2) Avoiding dispute: Will sets the distribution rules of the assets. A properly drafted Will can avoid any potential dispute among children or relatives about the distribution of properties after demise. Famous musician, Prince passed away 2016 without any instruction of the $300 M Estate. The dispute was a major issue since there was no Will.
3) Avoid Probate: Without a Will the estate can get into a lengthy and costly probate process. Recent celebrity Chadwick Boseman passed away without any Will. His widowed just filed with probate court as an administer to take over the estate. This probate and hassle could have been avoided by setting up a Will and Revocable Trust.
4) Divorce and Asset Protection for Beneficiaries: Will can specify that children will open their lifetime Trust and inherit properties. The lifetime trusts can safeguard the children with potential creditor and divorce protection.
5) Protecting Beneficiaries from Themselves: Specific clauses can be added into a Will for protections, such as age restrictions for fund withdrawals, which could include provisions for installments being taken out at certain ages, and drug testing to make sure the funds will not be used to further endanger a beneficiary.
6) Choose the right Trustee: You can give control of who will be the executor of your estate in a Will after you are gone. It can give you a peace of mind that the executer you choose is trustworthy and can take care of the affairs diligently.
7) Less burden on loved ones: You can leave your own funeral instruction like place for burial or any special prayers. It eases the burden for loved ones after you pass.
8) Leave a legacy: You can leave funds for charity of your choice and spell out to make donation or may be creating a charitable Trust under your name as a legacy to support a cause you are passionate about.
9) Remove an unwanted beneficiary: There might be an instance where you do not want certain individual to inherit your estate. For example, if all bloodline dies, the state may try to find next to kin to distribute the assets. You can spell out if any family members or relative you do not want to distribute the assets.
10) Minimize estate taxes: If assets are distributed through an irrevocable Trust as a gift or charity it may ultimately minimize overall taxes on the estate,
11) Peace of Mind: We all know how fragile life is especially during this Pandemic have shown, life is uncertain. Having A properly drafted Will gives a certainty and peace of mind that the loved one will be taken care of and the assets will be in good hand. Since the Will is revocable while you are living, you can change it as your situation changes.
Will is an important part of the Estate Planning. Everyone’s situation is different. So, it is important to speak to a fiduciary financial advisor who can look at your overall situation and give you advice on your estate planning needs.
