Understanding Wills
Posted on November 20, 2007 in the Money category
.Our own immortality is something that most of us avoid talking or thinking about. But the truth is that we will all die at some point in time and that any assets that we have collected in our lifetime will be distributed to others. A will simply is your written instructions on how you want your assets distributed. Wills typically tell:
- What assets are to be sold, such as real estate or businesses.
- To whom remaining assets are to be given, including family heirlooms and items of sentimental value as well as financial assets.
- When assets are to be distributed (immediately, at some specified time in the future, or upon satisfaction of certain conditions).
- Who is to be “legal guardian” and assume responsibility for raising minor children.
- Who is to insure that all these instructions are implemented correctly (called the “executor” or “personal representative”).
- Any other instructions you wish to leave.
Everybody has a will
If you die without having written your own will; your state government will distribute your assets for you. This is called dying intestate. Rules on how assets are dispersed differ from state to state but in some states, if you have children from a prior marriage and remarry, dying intestate means your current spouse gets only one-third of your assets, and your children get two-thirds. Furthermore, failing to write a will means you give up the right to name a guardian for any minor children that you might have. Do you really want a judge to make the decision on who will bring up your children if you should die?
Wills for Single People
Most single people believe that they do not need a will because they do not have a spouse or children. However, single people still have debts, assets, and family members. Would you want your parents to receive your assets or would you rather split them amongst your siblings? Would you want to leave money for nieces or nephews for their college education? Without a will, your family won’t know your intentions and, hence, your wishes will not be enacted.
If you have a non-married partner then the idea of a will becomes even more important. With unmarried partners, even if you live together, the only way to protect each other is for you both to write wills naming the other as your heir so that when either one dies, the assets will pass to the surviving partner. Otherwise when you die, he or she will receive nothing when you die. Assuming you have no children, your assets will go to your parents (if they are alive) or to your brothers and sisters (if your parents have died).
A will is the only way to ensure that your assets are distributed the way that you would have wanted them to be.
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