Estate Planning is often an overlooked part of financial planning. For many Americans, the focus of their financial planning is for retirement. We think about financial implications during our lifetime, but what does that mean for our families after we pass? One of the simplest estate planning tools is a will.
What Is A Will?
A will is a letter written to the probate court telling them where you want your worldly possessions to go once you pass away. If you want your house to go to your daughter, you have to have a will that states that.
A will is your last opportunity to decide where your possessions and money are passed to your loved ones according to your own wishes and desires.
Why Don’t We Create Wills?
A common misconception is that creating a will is expensive and complicated which is why many Americans have not created one.Over 55% of Americans do not have any estate plan in place and that has a big impact on our loved ones. This means that when we pass, our assets pass into probate and not directly to intended beneficiaries.
According to the Wisconsin State Bar, an estate could potentially stay over two years in probate. Why is that so significant? The prolonged probate process costs American families up to $2 billion per year, of which $1.5 billion is in attorneys’ fees. Do you want your assets to go to your family or an attorney?
With a Will, There’s a Way
A will allows you to ensure your assets benefit those you love most. It is important to leave as much information for your family as possible to ensure your wishes can be carried out as you intend. In fact, having a will is one of the best ways you can say “I love you” to your loved ones. The last thing you want is arguing among those you love most about who gets what after your passing. One way to avoid this is to sit down and have a set annual meeting with your loved ones where you literally read every word out loud just to make sure that there is no confusion.
Do you still think estate planning is expensive? For more information visit US Legal Forms for more.