Life is uncertain, and we have recently seen the examples, and no one is about to predict the future.
Having a valid will makes sure that your wishes regarding the property distribution will be followed after you.
So, what things you should know about creating a will? Here are the facts that you should consider before you start writing your will.
1. What is a will? –
A will is a legal document that lets you, as the testator, announce the legal heir who will look after your property after your demise. The property you own may include big, expensive items such as a house and land. However, you can also include small items that might have your sentiments attached to it, such as vintage items of your ancestors passed on to you.
You have to name the person in the will as an executor who will execute your stated wishes.
2. You will need witnesses
You can either take the DIY route or appoint an attorney to create your will. However, if you write your own will, you will have to find the witnesses by yourself. In many cases, witnesses can’t be your heirs.
As the will is a legal document, you will have to research the state laws and requirements beforehand. Even if you have done your research, we recommend you consult an estate planning attorney to check the legal requirements essential to properly execute your will.
3. Consider who to include as your beneficiaries
This might sound simple to you, but choosing beneficiaries can be complicated, especially when you have non-liquid or non-traditional assets such as your grandma’s china set or a Steinway piano. You can’t divide these items into your heirs. So you will have to declare one person who can behold such things that have sentimental values.
4. Consider your digital assets
Most people forget or just don’t consider digital assets to include in their will. But you should include a letter of instruction to address your digital assets. You can authorize the person you wish to handle your accounts and access credentials, such as usernames and passwords. Never include this information directly in your will though, as a will is a public document.
5. Tax planning for a Discretionary trust through a Will
If you have ever wondered how to save tax while making a will you will have to consider creating a discretionary trust. The discretionary trust is created for the benefit of your family members alive or to be born in the future. Under Section 164 of the Income Tax Act, a discretionary trust can receive tax benefits.
Creating a will is an important step towards a successful estate planning, and it helps you protect your legacy and your loved ones when you are gone.