Your finances and all the investments you have worked hard for shouldn’t go with the wind by failing to plan. Wills are crucial for your financial planning because they ensure your wealth passes on to the people who matter instead of getting lost elsewhere. However, nearly 55% of Americans don’t think about creating wills or leaving a plan for their estate because they believe their estate plans are complete and that everything is already taken care of, which isn’t true. The following compelling reasons determine why you need to include a will in your financial planning.
Protects Your Investments
You spend time, money, and energy planning for your financial future. You invest in insurance, put your money into different retirement vehicles, and save the bulk of your money for retirement. Unfortunately, if your will is not in place, your family will be aware of all your investments and properties.
Determines Who Gets Your Assets
Wills are crucial for your financial planning because they provide a roadmap for distributing assets to the people you want to benefit from after you’re gone. In addition, wills ensure that any funds left over after paying off debts and taxes apply according to your wishes. Ensuring the right people get their share is one of the most important aspects of having a valid will. If you don’t have a will, your loved ones will struggle, and the intestate laws will determine who inherits which property. As a result, the process can create uncertainty, confusion, and stress among family members.
Protects You and Family Members From Creditors
A will gives you control over who gets what from your estate after death. If you do not have a will, your assets will go through a probate court that dictates their distribution according to state law. Wills protect families from creditors and others who may try to claim assets or money from the surviving members. It also prevents those close to the deceased from using their ties for personal gain. Individuals can leave specific instructions regarding their debts by having a will in place.
Getting your will in order can be prudent but challenging if you have any assets and a family. If you have not signed one yet, or have questions about wills, call us to learn about incorporating a will into your financial plan today.