What would happen if something unexpected happened to you? I get it, no one likes to think about their own mortality, but, considering what happens to your assets after you're gone is a massive responsibility. Shockingly, only one-third of adults have an estate strategy document like a will in place, which means the state/government will decide what happens. In this blog post, we'll explore the power of creating a will, allowing you to take control of your legacy and ensure your assets are distributed the way you want them to be, not how some random court appointed person thinks they should be.
The Instrument of Power
A will is more than just a legal document; it empowers you to dictate the fate of your assets. Without one, the state decides how your property is distributed, disregarding your priorities and intentions. Taking the time to create a will grants you the authority to direct the destiny of your estate and provide for your loved ones even after you're gone.
The Four Pillars of a Will
Executors - The first step in crafting a will is naming an executor. Your executor is responsible for fulfilling the wishes outlined in your will. Their duties include assessing the estate's value, gathering assets, settling debts and taxes, and distributing assets among beneficiaries. I usually advise people to appoint at least two executors to ensure your wishes are diligently executed, even if your primary choice is unable to fulfill the responsibility.
Guardians – I believe designating a guardian for your minor children is the most critical aspect of a will. Choosing the right person(s) for this role requires thoughtful consideration. Ensure the designated guardian is capable and willing to assume the responsibility. Again, the courts will decide who cares for your children if you haven't named one.
Gifts - This section enables you to bequeath gifts of money or specific possessions to individuals or organizations. You can even specify conditional gifts, such as setting aside a certain amount of money for your young daughter, to be given only when she reaches a certain age or to pay for her wedding. Anything you want can be taken care of here.
Estate - Your estate encompasses all your assets, from real property and financial investments to cash and personal possessions. After allocating specific gifts, you can divide the remaining estate equally among all heirs or decide exactly who gets what with specificity. For example, you may decide to leave 45 percent to each of your children and 10 percent to a sibling.
Professional Guidance
While the law doesn't mandate professional assistance in creating a will, it's a task that leaves little room for errors or confusion. Since you won't be around to address technical mistakes or ambiguity when the will is read, getting the help of a legal or financial professional is very much recommended – ESPECIALLY if you have a sizable estate or complex family dynamics.
Embrace It!
Preparing for the distribution of your assets may not be the most enticing activity, but it's absolutely an act of love and responsibility toward your loved ones. Your hard work and dedication have created a meaningful legacy, and you deserve the right to determine its future. Crafting a will empowers you to shape your legacy and provide for those you care about even when you're no longer here.
Remember, embracing the power of your legacy means giving your loved ones the gift of security and certainty during what may be the most difficult time in their life. By creating a will, you ensure that your assets go where you intend them to, preserving your values and caring for the ones you cherish most. Take the necessary steps today to leave a lasting impact on those you love and cherish.
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 | About the Author James M. Comblo, CFF is the President & CEO of FSC Wealth Advisors. His greatest passion in the financial services industry is helping clients live the life they want, not the life they are forced to. To learn more about him click here. |