Do you have a will? If you don’t, you aren’t alone. Wills and life insurance are things that are easy to put off. They require honestly facing the inevitability of the end of your time here on earth. That can be tough for many people to do. But simply because something is tough doesn’t mean it isn’t important that we do it anyway.
A will is a critically important thing to have in place. Why? Here are a few reasons:
It allows you to decide how to distribute your estate after you have died.
While you may have an idea of what you want to happen once you have passed away, if you do not have a legal document in the form of a will that outlines those wishes, there is no way to ensure that they will be followed. Having a will in place and discussing it with family can help prevent fights among your family after you are gone.
You can decide how your children will be cared for if they are minors.
If you are comfortable with the court deciding what is best for your children if you die, you can pass on writing a will. I have a feeling that is not an agreeable situation to anyone who has children that are minors. Being able to appoint the person or persons who will care for your children is part of the value of having a will.
Shortening the probate process.
All estates go through probate. A will does not exempt an estate from this process, but it can speed it up. Delays can arise without a will as the court attempts to determine how to distribute your estate. A will helps that process move along more smoothly.
Minimizing Estate tax.
Anything given away in your will to family or charities will reduce your total estate value and that counts when your estate tax is being determined.
Determining the executor of your estate.
The executor of your estate is an important person. They are responsible for paying bills, closing accounts, and notifying any necessary establishments or businesses of your passing. A will allows you to designate this person so that they are the best suited for the job.
It provides you the ability to give.
This allows you to direct your giving with intentionality after your death. You can determine how and where you will give in advance. Additionally, gifts of up to $13,000 are excluded from estate tax.
You can always change your mind.
Your will is not locked in forever. You can make changes (and should) if there are life changes that take place that would impact those involved. For example, births or deaths in your family would be reasons to modify and update your will.
You are not going to live forever.
This is a tough but true fact of life. It is foolish and ultimately somewhat selfish to avoid writing a will simply because the idea makes you a bit uncomfortable. Families have been torn apart over estate issues. Writing out a will and communicating it clearly with your family members is absolutely critical. This way if there is confusion or anger over the way things are laid out, they can be discussed now, not fought over after you are gone. The loss of a loved one is a difficult time for any family. Don’t let your discomfort over the idea of writing up a will hurt your family.