
‘Why do I need a Will’ is a common question asked by many. Writing a Will might not be something we think about often, but it’s one of the most important documents you can have. A Will ensures your wishes are honored and your loved ones are taken care of after you’re gone. There is no simple answer about how to make your Will. It all depends on your assets, your circumstances and who you want to receive your assets.
Life events such as marriage, divorce, the birth of a child, or acquiring significant assets can impact your Estate Planning needs. Regularly updating your Will ensures it reflects your current circumstances and wishes.
So Why Do I Need a Will?
- Distribution of Your Assets: A Will allows you to decide how your assets—such as money, shares, property, and personal belongings—are distributed after your death. Without a Will, the state decides how your estate is divided according to specific laws, which might not align with your wishes.
- Protecting Your Loved Ones: A Will provides a clear plan for who should care for your minor children and how they should be financially supported. You may also specify at what age your minor children may inherit. It also helps prevent disputes among family members over your assets.
- Blended families: Many families are blended, with couples having assets from previous relationships, which they wish to give to the children of that relationship. It is important to cater for not only your current partner, but also any children from a prior relationship. We recommend you review the manner in which you hold your assets and how these are gifted in your Will if this is relevant to you. We can provide comprehensive legal advice as to the way to deal with these situations.
- Minimizing Stress and Confusion: During a difficult time, a Will can alleviate stress for your loved ones by providing clear instructions on handling your estate. It can help avoid lengthy legal processes and reduce the potential for family conflicts.
- Saving on Taxes and Expenses: Proper Estate Planning, including a Will, can help reduce estate taxes and other costs associated with transferring assets. This means more of your estate can go to your beneficiaries rather than being spent on taxes and legal fees.
Different Types of Wills
- Simple Will: This is the most common type of Will. It outlines who will inherit your assets and how they will be divided. It can also name guardians for minor children. A simple Will is suitable for straightforward estates without complex arrangements.
- Testamentary Trust Will: This type of Will sets up one or more trusts to manage your assets after your death. It’s useful if you want to provide for beneficiaries over time, such as minor children or dependents with special needs. The trust can distribute assets according to specific conditions you set.
Things you need to consider
- Who will be your Executors? Your Executors have the legal and administrative task of sorting out your assets and debts after you die and making sure that your wishes as outlined in the Will are upheld. You may specify whether your executor/s must act jointly or may act alone. It is important to consider the age of the executors and whether they will be willing and capable of carrying out the administrative tasks associated with distributing your estate.
- Who will be your beneficiaries and what effect will their inheritance have on their circumstances? You can designate anyone as a Beneficiary and distribute your assets in any way you like, however if you don’t provide for your family and dependents, your Will may be contested and your hard-won assets used on litigation fees.
You should also consider the effects that an inheritance may have on your Beneficiaries. In some cases, a testamentary trust can sidestep potential problems where the beneficiary may experience difficulties in managing such assets, or be disadvantaged by receiving a substantial bequest, so it’s important that you get specific advice about your situation.
- How do you know a Will is valid? To be valid, the person making the Will must be mentally competent, the Will must be correctly signed and witnessed and show no evidence of tampering. The witnesses to the Will cannot be beneficiaries or related to beneficiaries and must be over 18.
- How often should I review my Will? You should certainly review your Will after any major events, such as marriage, divorce, property purchase or sale, death of a beneficiary or if your assets change significantly. We also recommend that you review your Will every couple of years just to make sure that it is still relevant and reflects your wishes.
Creating a Will is an essential step in ensuring your wishes are respected and your loved ones are cared for after you’re gone. Whether your estate is simple or complex, having a Will provides clarity, reduces stress, and protects your legacy. If you haven’t done so already, Beaumaris Lawyers and Conveyancers can help with not only your Will but all of your Estate Planning needs like Powers of Attorney and Guardianship documents. We know the potential pitfalls and will ask you all the right questions to make sure that you have considered every possibility. We can advise you as to what Will is best for your certain needs and we can safely store your Will in our safe free of charge. So contact us today.