9 Necessary Things to Consider When Creating a Will

Most people are afraid of creating a will because of the fear of facing mortality. In fact, according to a report by AARP, forty percent of Americans over the age of forty-five years lack a will. Creating a will is very critical no matter the size of your possessions. Lack of a will triggers intestacy laws where the state takes the mandate of distributing and allocating your estate. Therefore, having a will prevents your family from unnecessary legal battles of sharing your possessions. What is a will? It is merely a legal document that expresses your wishes regarding the distribution of property upon death. The will may include properties such as land and houses or even small items such as pieces of art. However, it is important to note that some types of possessions such as insurance policies and retirement accounts may not be included in the will. This is because you are required to list the beneficiaries when taking the policies or opening the accounts. Below are nine things to consider when creating a will.

i. Assets

Before creating a will, it is essential to take an inventory of your assets and if necessary with the appropriate value. Besides, you should also indicate whether the property is independently owned or co-owned with another person, for example, a spouse or business partner.

ii. Beneficiaries

Beneficiaries are the individuals you intend to benefit from your will. They may be your family, charity organizations or other individuals. The share of each beneficially is expressed in terms of percentages of the residuary estate (what remains after payment of debts funeral and other expenses). A person under the legal age of 18 years can also be a beneficiary. However, the executor takes responsibility for the assets according to the terms of the will until the individual attains the legal age.

iii. Executor

An executor is an important factor to consider when creating a will. This is the person mandated to carry the terms of the will upon demise. An executor may be any adult person, but it is advisable to hire a professional executor. The executor will also act as a trustee in case there are minors in the will.

iv. Foreign properties

Sometime foreign properties may be subject to forced heirship, a feature which does not recognize freedom of testation. This may prevent you from including such properties in you will. In such a case, it is advisable to take advice on how to handle such situations. For instance, you may need to make a foreign will.

v. Family business

Including a family business in the will can be difficult tasks since some members of the family are not involved in running the business. This can be a particular problem for businesses such as farms. It is therefore advisable to discuss such matters early with the family members to avoid problems with those that might receive unequal values.

vi. Division of the estate

Dividing the estate among beneficiaries may be one of the hardest tasks of creating a will. Being fair does not necessarily mean equally dividing among the recipients. There are specific factors to consider. For instance, some children may be more deserving due to personal circumstances such as disability. However, it is essential to prepare a note explaining the reason behind the division.

vii. Claims against your estate

When creating the will, it is necessary to consider anyone who might make a claim against your possession upon your demise. Under the Inheritance Act of 1975 and the doctrine of propriety estoppel, some people such as civil partners, former spouses and others may claim your property.

viii. Enduring power of the attorney

A power of attorney is an important consideration when making a will. This is the provision that allows you to appoint another person to make your decisions when you are unable to due to unavoidable circumstances. The person is mandated to make personal decisions on your behalf including financial affairs.

ix. Putting things in order

A will is not created in isolation, and you should take the appropriate time to put certain things in order. You should check the location of title deeds for every property. Also, ensure adequate arrangements for undrawn private pensions, life insurances and other features not included in the will. Finally, you should review the will, every 3 to 5 years or in the case of significant life changes such as childbirth.