Estate Planning Basics: Why You Need 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. 

2. 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. 

3. 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.