A will is one of so important part of your financial management. Will planning is important because the document always acts as a record of the assets left behind by the deceased person. If your family structure is diverse and you want to leave your assets or wealth to different members of family, you should prepare your WILL. But before knowing the importance of a Will or its planning, you should understand first what it actually is. A Will is created by a person expressing his wishes regarding the disposition of his assets upon his death.
Why Making a Will Is Important
Will is important because it is the one last thing that a person can do for his family after his death. A well written and a clear Will also helps in avoiding any hassle among deceased natural heirs. In case a person wants to distribute his/her wealth to any person other than the natural heirs, the Will assumes essential importance. If you die without a will, there is no guarantee your wishes will be known or followed. It gives someone you trust the power to speak on your behalf where you can’t speak for yourself.
Who can make a Will?
The person making a Will must be in sound mind. A Will must be made by the person voluntarily. It is important that a person making the Will details out his family tree and the reason for giving and not giving the assets to any specific heir/person.
The Will must be signed and attested by two Witnesses. The witnesses must sign in each other’s presence and that of the testator.
Decide what to include in your will:-
It is time to think exactly about your belongings, savings and estate. The next important step is to provide list of items and their current values, like land, house, mutual funds, bank fixed deposits, postal investments, share certificates owned by you.
Be precise about where all of your stuff goes
If you’re happy with it all going to your spouse to handle as they see fit, that’s fine. But a will gives you the chance to decide what (and how much) other loved ones will get too. And remember: If you own a home with your spouse or someone else, the property automatically goes to the other person named in the title. So a will can’t overrule who gets the property—unless the deeds to it have changed too.
Select your beneficiaries
Next up, you will put down the names of the beneficiaries i.e. the people to whom you want to give your assets. If your spouse is still living you may just leave everything to her. You could leave an equal percentage to each of your children. Whatever these decisions are now is the time to record them.
Choose an executor for your will
The executor is the person who reads your will and sees that your wishes are carried out. Your executor should be a level-headed, ethical and responsible person you trust—someone who isn’t intimidated by strong-willed family members! You may want to choose one of your adult children, a family friend or an attorney. Attorneys are usually paid to do this out of the funds in the estate, and each state has specific laws about how to handle their fee.