Consider the Benefits of a Will

Preparing a last will and testament is one of the most important planning measures you’ll take in your life, both for you and for your loved ones. Once you decide to create one, you’ll see that there are many options as to how, when and who divides your assets among your family, friends and charitable organizations of your choice. Here are a few guidelines to some of your options.

If you have a will:

•  You specify the distribution. You can give any amount or percentage to the persons you pick rather than depending on the state statute to allocate or distribute in a manner you might find totally unacceptable.

• You nominate the guardian. If you have minor children, you choose the person who will be entrusted with the care and upbringing of those loved ones.

•  You choose the executor. This person has a great deal of power and authority. He or she will be in charge of managing the estate, paying all the bills and making the final distributions under your plan. You want to make sure you have selected someone who will do a good job to ensure the plan is properly carried out.

•  You can create trusts. Some family members would be far better to receive distributions of income rather than a lump sum principal amount. You can make provisions for these family members in a way that is most helpful to them.

•  You can make transfers to charity. The gifts to charity could serve as a legacy or remembrance to your involvement and support of those charities during your lifetime.

If you live in the U.S. and do not have a will, you are at the mercy of the state in which you are living at the time of your passing. Many states have very different laws to determine the distribution of your estate. If you are living in one state and have always had permanent residence in another state, there can be an expensive and costly litigation among the heirs who would take more under the statutes of one state or the other. And so, in some cases, entire estates have been lost due to the enormous expense of litigation to settle such matters.

Also, if you fail to do so, the court system will select a guardian for the minor children and select an administrator who determines any special needs. Finally, in the case where no will has been prepared, provisions are never made for charities you may have supported during your life.