Getting your affairs in order for after you’ve passed on may feel daunting. However, this is an important step, even for younger people.
A last will and testament determine what happens to your money and assets when you die. If you have a family, you can create a will that ensures their financial well-being after you’re gone.
This process isn’t always easy. You need to understand exactly what to put in a will so your bases are all covered. To help you out, we’ve created this simple guide.
Material and Financial Assets
A will allows you to determine how your material possessions and finances get distributed. You’ll need to be as detailed as possible when including these items.
Things like cars, heirlooms, furniture, and collectibles are material assets. Include anything of value you want to be passed on to someone else.
It’s important to outline how your bank and savings accounts will get distributed. You’ll also need to consider stocks and bonds.
Next, you’ll need to include all property you own. This could be a residential home or commercial real estate.
This is a much more complicated process than distributing material or financial assets. You may need to create a trust.
Keep in mind that these practice areas of the law require attention to detail and experience. It’s best to hire an attorney to help you out.
If you’re a parent to minor children, this is a crucial step. When you establish guardianship, you’re naming who will care for your children in the event of your death.
Most people name close relatives as legal guardians in their will. You can also name a friend you trust.
It’s important to make your decision with the best interests of your children in mind. The people you name as guardians should understand their responsibilities as well.
Once you’ve determined what material, financial, and real estate assets to include, it’s time to name your beneficiaries. These are the people who’ll receive these assets.
Many people opt to leave everything to their spouse. However, if you want to play it safe, it’s better to name specific beneficiaries.
It’s important to be very specific when outlining what each person gets. This will help avoid confusion or friction in the event of your death.
Finally, your will needs an executor. This person’s job is to read your will and ensure everything gets carried out properly.
An executor can manage your finances in order to pay off debts. They’ll also oversee the gifting process for specific possessions you want given to people.
Choose someone smart and trustworthy. If you’d like, you can name an attorney and pay them with funds from your estate.
Understand What to Put in a Will
As uncomfortable create a will is, it will set your family up for financial stability and ensure your possessions are in good hands after you die. The sooner you get your will set up, the better.
Use this guide for what to put in a will and don’t leave any stone unturned.
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