Good financial planning takes care of wealth distribution to the next generation.
You invest in a life insurance policy to protect your family member after your death. You make a WILL to make their lives easy after your death. You also make a WILL to distribute wealth in a fair way. You make a WILL to express all you wish about your wealth.
“When you do the things in the present that you can see, you are shaping the future that you are yet to see.” Idowu Koyenikan
Making a WILL is not only a good practice but is necessary for a peaceful family once you leave the world. It is not only about prudent distribution of your wealth but it is also about hassle-free distribution.
Here are some of the reasons why you should make a WILL as soon as possible.
- Enable Thoughtful Distribution:
Making a WILL is an important financial decision. It must be made when you are alive. This exercise of making a WILL make you think about the distribution of your wealth. By default, it will go to your legal heir equally.
However, by making your WILL you can thoughtfully allocate your wealth to everyone you wish to. You can exclude anyone, who are eligible, you wish to.
- Avoid Litigation:
This is a big benefit. To avoid litigation among your legal heir, your WILL plays an important role.
Your specific declaration of intent usually avoids litigation. Your legal heir knows your intent and chances of ligation diminishes.
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- Avoid Legal Process:
Property distribution without a WILL is a legal process. Having a registered WILL speed up the legal probate process.
It saves time and mental stress of your loved ones.
- Avoid Mismanagement:
Distribution of wealth without a WILL is a complicated process. It is a legal process. It makes legal heir anxious. The chances of litigation increase. It is a long process. The chance of mismanagement of your wealth increase.
- Who will take care of minor
Your WILL allows you to make an informed decision about who should take care of your minor children. In the absence of a WILL, the court will decide and choose among family members. They can also opt for a state-appointed guardian.
A written WILL allows you to appoint the person you want to raise your children. That also makes sure it is not someone you do not want to raise your children.
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- Your donation and Gift wish
You may wish to donate some of the wealth. You can do when you are alive. If you can’t do during the lifetime for whatever reasons, you can express your wish through your WILL.
A WILL should also have an executor. This executor is responsible for transferring the property as desired by the person making a WILL.
You should appoint only a trusted person as the executor of your WILL. You need to get his approval for the job of an executor.
Though registration is not necessary but registered WILL is recognised in the court easily. A WILL is an important part of succession planning.
Make sure you make a WILL. Make sure your family members know about it. Make sure it is kept at a place from where it can be found easily.
This is a brief roundup about why making a WILL is necessary. It is not only for the wealthy but it is for everyone owning some wealth and assets.
To enlighten yourself about the Financial Fitness Read: 10 Components For Your Financial Fitness