Are you thinking of making a will? In today’s world, with the way that society is, you never know what can happen to assets and your loved ones left behind. When disaster happens, the consequences are far-reaching and devastating. A will helps avoid these unfortunate scenarios by providing a means for all your property to be distributed per your wishes after death. In addition, a will may provide inheritance tax benefits depending on what type of estate it is because different types of estates are subject to these taxes, such as an interest in property or cash assets kept outside your country.
However, a will does not always provide all the assistance that it could. For example, if you are married, your spouse could claim your estate and refuse to share it with your children from a previous marriage, including grandchildren and great-grandchildren. Others can question a will after you die, meaning those who are supposed to inherit from your estate may not get the property they deserve. For example, a surviving family member who thinks that they should have been left more or something in the will can challenge its validity in court.
If you want to avoid these potential problems and make sure that your wishes are carried out after your death, it is important to make the right will at the right time. You don’t even need to worry about the hassle of paperwork either since you can just make a will online in this day and age. Still on the fence? Let’s take a look at the detriments of not making a will at the right time.
- No Will, No Executor
Without a will, there is no executor. Therefore, a person must be chosen to serve as your estate’s administrator. This might result in inconvenience, cost, irritation, and even loss. With no executor, your assets cannot be efficiently managed.
- Lack of Benefit
A will with a living allowance can provide an estate benefit to several people who are entitled to inherit from you. For example, if you have two children from a previous marriage, at least one of the kids can be granted your benefits, and the remaining child or children would get nothing. A will with a living allowance allows for the children who might not have known about it to be paid their benefits out of the estate’s resources more fairly because they can keep more than they would otherwise receive under intestacy law. Attendance at a funeral also comes under this benefit category.
- Immature Executor
If you are in the process of making a will and have chosen an executor but haven’t finished it yet, the executor may die before you do, which would nullify his/her right to administer your estate. If you die without a will, your estate will be handed over to others under intestacy law, in which case your assets may end up with an immature executor. This can result in trouble for all involved.
- Will You Leave Too Much?
You don’t want to leave too little, but you also don’t want to leave too much. As a general rule when it comes to estate planning, a person’s estate must include enough assets that they can live comfortably after his/her death for the rest of their lives, although you might want to leave a little bit more than that depending on the type of will you have. In addition to anything else, your assets won’t be distributed per your wishes if you die without a will.
If there is a will in place, it’s important to remember that not everyone is legally entitled to inherit, but if someone is disinherited, there may be no one who can come after you after your death to claim that inheritance. This depends on who you have chosen as the executor of your will and whether they can be trusted. Even if the community respects the executor, someone else might be able to challenge their right to administer your estate.
- Same-Sex Unions
Many countries do not recognize same-sex unions in inheritance laws. This implies that your significant other could not get anything from your estate if you pass away. Your estate and savings will end up going to your blood family in full or whoever is in line of succession. The absence of a will might rob them of their deserved part of the life they built with you.
- Grandchildren and Inheritance
If you intend for your holdings to pass to your grandchildren should their parents pass away before you, then do consider that you will need a will to indicate your intentions. Otherwise, the state and state laws shall decide the distribution of assets.
- Living Will For Your Wealth
Many people don’t realize that there is a living will for assets too. It is called a “Pour-Over Will,” and it allows you to make a will that explains what happens to your accounts at different financial institutions in the event of your death. You can determine who gets what or even leave nothing at all. This can greatly save your loved ones from having to go through the hassle of asking the courts if they are entitled to inherit these assets after your death.
- Survivorship Issue
A will specifies who gets what (or nothing) when you die. However, as you know, it doesn’t specify what you want to happen to your accounts in the case of survivorship. This can result in a lot of confusion after your death if there are no surviving joint owners on the account. If you and your spouse leave a joint account or use a shared credit card, who gets the money in the joint account once you have passed away? If there is no will, then it will go to the state.
Keeping and maintaining a will is essential for all. It can protect your loved ones from being burdened by the expense and annoyance of dealing with the state. It can also help you avoid family feuds and legal battles regarding your financial assets after death. Make sure you take care of this important issue now, so your family doesn’t have to face any regrets later on in life.