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Your last will and testament will contain an outline of our wishes. When you pass away, naturally, your loved ones will inherit your assets. But who inherits real property, and who gets the car? In some families, these questions persist for decades and may lead to quarrels and estrangement.
What are your assets?
When the time comes, a legally binding document should express in detail to whom the specific property will be given. Cars and investments, bank accounts, and other personal effects of value are some of the things you need to think very carefully before assigning beneficiaries.
Children will suffer
Children who are orphaned would have doubts as to their financial security. If you pass away without a system, the money you have saved for the children’s future might end up in the hands of a bank, or your least favorite cousin.
If you have a document saying where exactly each asset goes, then you can be confident that beneficiaries will be able to use the money and strive to have a bright future. If you don’t have a will and you die, then the inheritance laws in your state will be the basis for distribution of asset.
A will is a document that compels sectors wanting to divide your assets to honor what is included within. If, for example, you do not have children of your own, clearly state the names of your beneficiaries. Having a will ensures that your wishes are honored with regard to how you want your assets divided.
If you die without a will, all of your assets are divided up according to the inheritance laws outlined in your state. For entrepreneurs, business assets must be separated from personal assets. Be specific when allocating business assets.
As for personal assets, always give clear and concise directions on how to divide and distribute. Lastly, your swill should include expense, taxes, and debts.
Step One: Beneficiaries and Executors
While you are listing your assets, it’s efficient to add to the list that names of your beneficiaries, as well as the executor. The executor is the administrator of your estate. A prudent and vigilant executor is ideal. Assigning an alternative executor is advisable since the person given the job originally may be stricken and unable to perform his or her job.
Work with an experienced estate planning attorney here in Denver to help you in drafting your last will and testament. You must identify the beneficiaries clearly, and add provisions for an alternative executor.
Why is it essential to prepare a last will and testament?
Family members that are in mourning would probably find it challenging to deal with decisions concerning the distribution of your assets. You are doing everyone a favor if you design a last will and testament, which removes the likelihood of your progeny fighting each other to the teeth for a tract of land.
If your assets are clearly assigned to a family member or other beneficiary, then perhaps feuds will be avoided, and everyone can focus on the task at hand – grieving on the hour of passing.