Estate Planning Basics: Why You Need a Will

a will

Property is a complex topic to discuss. But honestly, every one of us has a fear of death, but we refuse to talk about it, especially about who will handle our belongings after our death. This is why initiating an estate plan and making a will is one of the most essential things you can do for your family and loved ones. 

To feel the importance of it, you have to stick with us till the end. Here we will be unveiling what your will can do, why it is not like any financial decision, and how you can make a will. Let’s start the discussion most simply.

What Is Will? 

A will is nothing but a paper of your decision that mentions what you want with your property with your money, and even the care of your children. More specifically, the will is a legal document that states who will take over your property after your death. Things that are included in a will, 

  1. It includes who is going to inherit your houses, cars, gold and other valuable items. 
  2. Who is going to handle your estate? That person will be known as the executor. 
  3. Who is going to take care of your kids, especially when they are minors? 
  4. In a will, you can also mention your preferences, and accordingly, you can state them in the will. 

According to the law, if you avoid making a will, someone will make decisions about your property. 

Is It Important To Make A Will At A Young Age? 

The answer is always yes. 

Life is always unpredictable. Illness, accidents, and unexpected events can happen at any age. Unless you make a will, you won’t be able to ensure that your wishes are followed by your preferred people or by the government. 

Common Misconceptions About Will

There are a lot of misconceptions people often carry about a will. It will control everything about your estate, but things that it doesn’t control are, 

  1. Will is a jointly owned asset. That’s why it directly passes to the other owner. 
  2. If you have any setup for trust, then the assets are generally managed outside of your will. 
  3. Just like the insurance policies, it will directly go to the person whose names are mentioned in the will. 

 Before you make any kind of decision to create a will, make sure you are aware of all the state policies. 

How to create a will

To create a will, there are three things you can follow, but before that, you must consult with a lawyer. 

  1. Online Tools

In today’s generation, a lot of tools are available that provide templates to work with. If there is no complex with assets and no family drama, then this process will work fine, but before that, make sure it meets all the legal requirements of your state. 

  1. Hiring Lawyer

If you see that there is a complicated situation with your finances, assets, and businesses, then you should always plan to consult a lawyer. This way, you don’t need to take any unnecessary headaches, as everything will be aligned with the state law. 

  1. Update It

Once a will is made, you cannot just forget about it. When any major changes happen in your life, like marriage, kids, divorce, or buying a new home, then you must update it accordingly on your will. 

Things That Should Be A Part of Your Estate Plan 

While you are making your will, you need to know which estate plan to use. These are, 

  1. Power of attorney, here you should mention someone who is going to manage all your finances. 
  2. Trusts are extremely useful when you want someone to manage well or care for someone with special needs. 
  3. There should be a nomination for beneficiary designation. 
  4. Health care proxy is required for your medical wishes, and it also gives the power to someone (mentioned in the will) who makes decisions when you can’t. 

What Happens When You Don’t Make A Will? 

Last but not least, as you have covered all the ideas regarding the importance of a will, you must know what situation might arise if you don’t make it. 

  1. Generally, the law follows a strict hierarchy: spouse, children, siblings, and others. But if you want your best friend to inherit all your properties, then you must make a will. 
  2. There will be unnecessary family drama. 
  3. When your kid is a minor and you have made no will, then the court will decide who is going to be their guardian. The court might choose the wrong guardian as well.

Also, Check – What’s a REITs ( Real Estate Investment Trust )

Wrapping Up

Always remember, when it comes to a will, it will always have endless legal interference. So, if it is not written,  there is no guarantee. No matter if you are married or unmarried, making a will is a very essential to safeguard your loved ones. Initially, the process might look extremely tough, but believe us, if you make a simple list like choosing your assets, your wishes, and the people you blindly trust, making a will becomes much easier. So, make it quickly and let yourself and your loved ones sleep with peace. 

Please share your thoughts on this post by leaving a reply in the comments section. Contact us via Phone, WhatsApp, or Email to learn more about mutual funds, or visit our website. Alternatively, you can download the Prodigy Pro app to start investing today!

Disclaimer – This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.

Leave a Comment

Your email address will not be published. Required fields are marked *


More Post

Mutual Funds vs Stocks: Which Is Right for You

If you are a beginner in the world of investing, you might wonder whether it’s better to allocate your funds to individual stocks or opt for mutual..

CAGR vs XIRR – Calculate Mutual Fund Returns

You are on a road trip navigating through sharp turns on the road and natural scenery. You need to keep track of the distance and time to..

How to Read a Mutual Fund Fact sheet: A Simple Breakdown

Mutual Fund Fact Sheet One of the most effective tools for building diversity in your investment portfolio is investment in mutual funds. It’s critical to learn all..

Capital Gains Tax: what it is, how it works, and current rates

Capital Gains Tax Have you been investing in the stock market for a long time? Then taxation would be a very interesting topic for you. But we..

What Is A Mutual Fund IRA? | Guide 2024

A mutual fund IRA is a retirement investment account that offers dual benefits of both mutual funds and IRAs. IRA means Individual retirement accounts, and IRAs do..

Understanding The Importance Of Dividends And Capital Gains In Mutual Funds

It’s almost vacation season and you are on a long break from your studies or work. Busy in streaming the best shows on Youtube with your favorite..

What is NAV – Net Asset Value, Types, Formula and its Roles

You crack the most complex puzzle, but what happens when it comes to investment and determining NAV (Net Asset Value)?  Most people find it challenging to crack..

Ways to Measure Risk in Mutual Funds

Picture yourself getting ready to journey to a nearby hill station by car. The thought gives you a feeling of excitement and adventure running through you. However,..