The most important reason to make a will is for the protection of your wishes and your family. Regardless of what you do or do not own or how much money or property you do or do not have, when you write a will you decide who gets what.
Husband and wife usually make their wills at the same time. Usually, a husband names his wife to be the executor of his estate (and vice versa). However, what if wife is unable to serve due to illness? In your will, you can pick your back up executor of your estate and save the estate time and money.
If you do not write a will, then the law of Pennsylvania (at the time of your passing) decides who gets your property and possessions.
Jointly owned property goes to the person who co-owns the property with you. However, inheritance tax may be due on the inheritance unless the co-owner is your spouse.
If you have young children, then you pick your guardian, not the court.
You can pick the person who will be responsible for following your wishes (executor) in your will.
Your will can let everyone know where and how you want your funeral and burial to be carried out.
You can make gifts to your church or favorite charity.
You can make specific gifts to family or friends.
You can transfer real property under your will.
Do you want your daughter-in-law or son-in-law to collect your child's inheritance? A will can fix any misunderstandings. In your will, you can create a trust for grandchildren to keep their inheritance safe in the event that your child is not living at the time of your death. The trust keeps your grandchild's inheritance safe until they turn 25 years of age and your grandchildren can be more responsible with money.
You can make anatomical gifts, but let family members know your wishes.
If you have jewelry or collectibles, then it is very important to make a list of those pieces and you decide who receives the jewelry and collectibles when you pass.
Inheritance taxes will be paid by your estate unless your spouse is inheriting everything in your estate.
Check your life insurance beneficiaries and be sure the beneficiaries are up-to-date.
Check your beneficiaries on your 401(k), pension or other retirement plans and be sure the beneficiaries are up-to-date.
Making a will is smart planning just like when you plan healthcare decisions.
Next time we will discuss financial powers of attorney and why it is better to have a power of attorney(less time and money) versus a guardian (more time and money).