What is Estate planning?
Estate planning is deciding who will get your assets, estate, and personal belongings upon death. This includes planning how much of your assets or property you want to give to each beneficiary. While planning your estate, you can also name the person who manages your resources and assets. They can have power of attorney both financially and health-wise.
This person can make decisions on your behalf and is responsible for taking care of your assets until the distribution has been completed per your plan. They have to ensure that all these assets will be distributed according to the instructions present in the wills. The process of estate planning involves making a will or a trust.
What is a will?
Will is a legal document with the intention of declaration. He wants his personal belongings, properties, and assets to be distributed and to whom after their demise.
A will includes the information about the beneficiaries. Thus, it also includes the name of the executor who is responsible for executing the instructions written in the will. The executor mentioned in the will manages the assets and the properties until they’re distributed.
A will can be prepared by any person 18 years old and above, given that this person is of sound mind and has no undue pressure on him or is not fraud or coerced into making a will.
One can also take the help of an attorney specializing in estate planning to make a will and name him as the executor.
A will goes through the probate process under the state’s probate court.
Benefits of writing a will
There are lots of benefits of writing a will which include.
- It provides the person making the will, the testator, a sense of understanding of his current financial strength. It thus can help you provide financial security for your family or loved ones.
- It can help you as a testator to have a sense of peace as you can choose how your assets are distributed and to whom after your death.
- A will helps a person to gather all information about his assets and inventory.
- One can avoid family disputes in the future by rationally distributing the assets.
- It helps you to disinherit certain members who you dislike.
- Helps address online and offshore accounts, including financial investments made by you.
- With the help of a will, you can choose a guardian for your minor children or can make provisions for them and any pets you have.
- A will can help save certain inheritance taxes.
- You can choose the executor of your will.
- A will makes the process much easier and helps your loved ones by preventing financial and legal grief.
A will can refer to as the first step toward estate planning. Thus you should plan and make a will if you want to plan your estate.
How To Write a Will while estate planning?
A will can be drafted online as well as offline. A will has considered being a valid will if it fulfills the following things
- It has a clear letter of intent, which states your intention regarding the distribution of your assets.
- You sign as well as the date of the will in the presence of two witnesses; both should be present at the same time and should not be included as beneficiaries under the will.
- While drafting the will, you should have the mental capacity to form a will and should be doing so under your own will, not due to any undue pressure or influence.
What happens if you have no will?
If someone has no will or trust drafted before his demise, then the state where the person resides will oversee the distribution of the assets and the properties of that person under the state probate laws.
This makes the whole process quite lengthy and expensive for your family and loved ones, and the court is in full control over the process.
Due to this, some of the people who you may not have wanted to have your assets or belongings might get the assets if they file the claim for them during the probate process that the court is following.
Therefore, you are strongly advised to form a will or trust and plan your estate to avoid all these.
In this article, we will know whether a will is a part of the Estate planning process and why it is required.