Drafting a will earlier in your life is one of the many things that you can do to prepare your family for when you’re gone.
It is important to keep your intentions clear and to ensure that your assets are left to the right beneficiaries when you’re gone.
Getting help from a law firm such as will and estate lawyers Australia is a wise step to take to ensure things are done correctly.
To explain further, this article explains how having a will can protect your children once you are gone.
What does a will protect you from?
Creating a will is a smart step to take. It allows you to protect your family and finances. Of course, it saves your family time and stress in clarifying what goes to whom!
A will is a legal document that states your wishes regarding the care for your young children, if you have any, and the distribution of your assets upon your death.
It contains instructions that should be carried out once you’re gone. In particular, a will include should include an executor or someone who will collect and manage your assets, pay your debts and other expenses, and distribute your assets to the chosen beneficiaries.
In that sense, the will protects your assets by making sure it’s all distributed equally to your chosen beneficiaries.
How does a will work with kids?
The main reason why you need to have a will is to ensure that your children are left with the people that you trust.
Without the will, the decision about who will care for your children will go to the estate which you don’t want to happen.
So, how does a will work with this?
The will allows you to name a guardian for your children to manage their finances and also to set up long-term management for their property.
In simpler terms, the will gives you a say on who will care for your children when you’re gone. So, make time to think through your will and sit down with your attorney for advice and professional assistance.
What you should never put in your will?
Making a will for your surviving loved ones is something that you can do to make sure that everything is set up for them when you die.
However, there are a few things that you should not include in it such as:
- Digital assets. Digital assets such as eBooks and music files should be settled outside your will. You don’t own them in the first place – you merely own a license to them.
- Assets in a held trust. If you have assets held in a trust, it will pass automatically to your named beneficiary in case of death or incapacity.
- Assets with a right of survivorship. Any property held in joint tenancy, joint by tenancy, and community property with a right of survivorship should not be included in your will. These types of assets will be left to the surviving co-owner when you’re gone. So, there’s no point in including them on your will.
Assets with designated beneficiaries. These are the assets with designated beneficiaries such as retirement accounts and pensions, life insurance or annuity proceeds, and payable-on-death bank accounts. When you die, these all go to your named beneficiaries without additional planning.
That said it is important to know which assets to include in your will. Take note, you can only include those assets that are in your name. For that reason, consulting professional help is highly recommended.
Having a will to protect your loved ones especially your children is essential. As you can see, it makes everything clear and transparent as to who will care for your young children and manage their finances and properties when you’re gone.
It is important to understand what kind of assets should be included in your will and to ensure everything is properly stated and emphasized. This will save your family money and time in clarifying the content of the will.
Of course, you should take a moment to plan writing the content of your will and have a talk with your lawyer about it. That way, everything is stated explicitly.