Death is an unpleasant but inevitable reality. No one likes to think about what will happen after they pass away, but it's essential to plan for it properly. One of the essential components of end-of-life planning is creating a will. A will is a notarized document that empowers you to determine the distribution of your assets and designate a guardian for your children (if they are under 18) in the event of your passing. It ensures that your wishes are respected and provides reassurance regarding the care of your loved ones after you're gone. Unfortunately, many people avoid creating a will because it forces them to confront their mortality and other sensitive issues. However, not having a will comes with significant consequences, such as leaving your loved ones clueless about your wishes, legal disputes, and higher estate taxes. Read this guide to know what to include in a will to ensure your wishes are respected.
List of Beneficiaries and Assets
The most crucial component of a will is a list of beneficiaries who will inherit your assets when you pass away. You should list each beneficiary's full name and contact information. Make sure to note the assets you want them to receive and the percentage of each asset they should get. It's vital to review this information regularly to make any changes or additions as your financial and personal circumstances change.
Executor
The executor is the person you choose to oversee the administration of your estate. They are responsible for making sure that all your wishes are carried out and that your assets are distributed according to your will. It's essential to choose someone you trust who has the skills and experience necessary for these tasks. You can name an alternate executor in case your primary executor is unable to fulfill their duties.
Guardianship
If you have children under the age of 18, it's necessary to name a legal guardian who will take care of them when you die. This decision is a personal one that should be made with careful consideration. Think about each potential guardian's values, lifestyle, abilities, and willingness to take on this responsibility. Furthermore, it is prudent to appoint a backup guardian in case your initial selection becomes unavailable.
Specific Bequests
Specific bequests refer to gifts you want to leave to specific individuals or charities. You can list any personal property, real estate, or money you want to go directly to someone or a charity without being subject to your overall estate plan. It's vital to be specific in your bequests so there's no confusion about who gets what.
Digital Assets
In today's digital world, we all have digital assets that need to be managed after we die, such as online banking, social media accounts, and email accounts. It's essential to make a list of your digital assets and how you'd like them to be handled. This list should include each account's login information and whether you'd like them to be deleted, transferred to someone else, or preserved in a specific way.
Creating a will is a vital aspect of end-of-life planning that can ensure your wishes are respected, and your family and loved ones are taken care of after you die. To create an effective will, you need to consider several elements, such as beneficiaries, executors, guardianship, specific bequests, and digital assets. Ensure that you consistently review your will and make any required adjustments or additions as your life circumstances change. Although it's a challenging topic to deal with, creating a will can give you peace of mind and alleviate some of the burden for your family during a difficult time.
For more information, contact an estate planning professional in your area.