One of the best things you can do to protect those you love and the assets you will leave behind in the event you pass away is to create a will today. Most people tend to avoid discussing what will happen to their wealth and estate should the worst occur, and we agree, it’s not exactly a cheery subject. However, if you don’t take the steps now to create a Will while you’re still alive, then the Government will make those important decisions for you… now that’s a scary thought!
When you create a will, you are effectively spelling out exactly how you would like your wealth and estate to be handled after you pass away. There are tons of reasons why creating a will is so important, but here are 5 of them that will hopefully motivate you to start a meaningful discussion on family planning with your local Spokane law offices today.
Reason #1: Take care of Your Children
Children, especially very young children, can be most vulnerable to uncertainty in the event that they suddenly become orphans. A Will grants you the power to appoint a person you trust wholeheartedly as the guardian for your children when you’re gone. Otherwise, the State will decide who gets to take care of your little ones.
Of course, raising children isn’t exactly cheap these days. Fortunately, you can also set up a trust fund which is managed by Trustees whom you trust and choose, to provide financial support.
Reason #2: Ensure Proper Distribution of Your Wealth
We’ve all heard of countless horror stories of family and even non-family members fighting over who gets what when someone dies. When you create a Will, however, you can specify who receives what and how much. In addition, you can also include special provisions for non-family members such as close friends or mentors.
Reason #3: Protect your Family Business
According to a recent article in Forbes magazine, less than a third of family businesses survive the transition from first to second generation ownership. Of those that do survive, half of them won’t make it from second to third generation ownership. A Will lets you ensure that your company is properly passed down to your heirs or co-owners.
Reason #4: Shorten up the Probate Process
Regardless of whether you have a legal Will on file or not, your estate will need to go through a probate process. These processes are necessary to administer how your estate will be distributed, but they are often complicated and time-consuming and can be a burden for loved ones to have to deal with on top of your passing away. With a will, however, the process can be cut shorter and helps reduce the unnecessary hassle.
Reason #5: A Will can help Reduce Estate Taxes
A will can help you reduce your estate taxes so you can ensure that your beneficiaries get as much value as possible. Once your assets are distributed to your beneficiaries, the value of your estate is also reduced therefore lowering your estate tax bill.