Tuesday, April 16, 2024
Business

Reasons to Make a Last Will

An important document in estate planning is the last will and testament. Many people tend to put off drafting a will but this can be a mistake as they will overlook its importance and how this will contribute to the peace of mind of their loved ones.

When you have a will

It will be a legally serving binding document that will let you dictate how you want your assets to be distributed once you pass away. You may have personal belongings, property, money and shares to distribute as assets. But when you don’t have a will, this can lead to the assets being distributed in a way you may not have wished or in conflict with the family dynamics. You can look up wills and estate lawyers to get an idea of how to get started with all of this. You will be able to appoint an executor that will execute the provisions of the will ensuring that your wishes are carried out. They will act as the fiduciary and manage the affairs of your state, settle any outstanding debts and distribute assets according to what you have instructed in the will.

If you are a parent with minor children

It is essential that you have a will as this will help nominate a guardian who can assume responsibility for the care of your child or children and their upbringing if you were to be met with an untimely demise. But in the absence of a will, guardianship will be decided by the courts and this ruling will be based on default legal provisions. When there are clear instructions laid out in a will outlining how you want your assets to be distributed among the family, this will help you avoid potential conflicts in the family. There is no cause for ambiguity when there is a will and family members will not try to dispute the will or experience discord. It can be a quite tense affair after your passing for the family members to divide assets and this can lead to a lot of conflict at a time when they need to rely on each other’s strength.

Even if you feel as if you do not have much to pass on

It is always a good idea to dictate what your wishes are so that it can help keep the peace in the family. Also, tax planning strategies can be incorporated in the will so that the tax burden on the estate can be reduced. This will help preserve more assets for the intended beneficiaries. You can have provisions like charitable bequests and trusts to optimise tax efficiency. If you are a business owner, it is important to dictate a will so that the ownership and management of the business can be seamlessly transferred following your death. You can specify a succession plan and outline directives on how you want the business assets to be handled so that the continuity of business operations can be preserved.

Jodi Davis
the authorJodi Davis