What You Need to Know Before Making a Will
A will allows your property to be distributed the way you want it to be when you pass away. In order for a will to be valid, you need to have something called testamentary capacity. This means you first need to know that you are making a will. You also need to be of sound mind and understand the importance and implications of what you are doing. To prepare for putting together your will, here are four things you need to know before you sign:
1. Know your Property
Since a will distributes your property, you need to know what your property is. Not only do you need to know how much you have, but also whether your property is encumbered by debt. For example, do you have a car loan or a mortgage? Are there strings attached to your retirement accounts? Do you have any unique collections? If property is not mentioned in your will, its fate will likely be determined by a probate court judge whom you’ve never met.
2. Know who has a claim to your property
If you have debt, you have creditors who have a right to be made whole. Likewise, your family members, including your spouse, have natural claims to your property. Because of this, you need to know who has a legal right to your property when you die. Understanding and appreciating these relationships will allow you to make an informed decision.
3. Know your family relations
In order to have the right capacity for a will, you need to review the relationships you have with all your family members. This is because your family members are the natural heirs to your property. For example, forgetting a sibling but not purposefully leaving them out of your will could affect its validity. If your wishes are different than what probate law naturally assigns, you need to know whose rights are being affected and how. A will is the first step of your family wealth plan. Creating this with your family in mind can allow to you start creating generational wealth for your family.