Estate planning involves providing instructions on how your assets should be divided upon your death. While this is the main focus, there are several other benefits to estate planning.
One of the foundational documents of every estate plan is the will. Despite the importance of estate planning, over half of Americans have no will.
Here are some of the key reasons why you should draft a will as soon as possible.
Protecting your family
A will can ensure that your assets go to the people you love the most. You may have worked hard over the years to build up savings and assets. Without a will, if you pass away, this means you die intestate. In such a scenario it is up to the courts to distribute your assets. They may not do this in line with your wishes. A will can help you to avoid this situation.
In your will, you should name an executor. This is the individual tasked with ensuring that your instructions are carried out. An individual you trust will be better than someone the court appoints.
Legal guardians
A will is about more than money and assets. This document can also carry out crucial functions such as giving you the ability to nominate legal guardians. These are individuals who will be responsible for raising your children should something happen to you. You can name multiple guardians, including backups.
If you have yet to draft a will, then this is something you should consider doing for the reasons discussed above. Even if you have drafted one already, it needs to reflect your current wishes. You can update your will at any time. Seek legal guidance to find out more about your estate planning options.