Whether or not one needs a will often arise among people who do not own many possessions. A will is necessary for adults over 18, especially for adults with minor children. You should not delay drawing one any longer if you have little children. Even if you and your spouse/partner own all assets together, it does not matter. So, yes, a will is necessary whether you are married. An estate plan is much more than the transfer of assets. Additionally, it is to convey your wishes to those left behind after you die, so they can be followed as you wish, for instance:
Who Looks After Your Estate
It is up to you to choose your executor(s). These people will handle your estate and make all the decisions. It is possible to name up to four executors. However, fewer may be more practical since they must make decisions together. An executor must be older than 18 and may also be a beneficiary of the will. It is the executor’s responsibility to follow the instructions in your will to the best of their abilities.
Who Takes Care Of Your Dependents
A will can specify how you want your children to be cared for or what you want to do with vulnerable adults. The choice may include details such as who will take care of the vulnerable adults and where they will live. Decide while thinking of any potential carers since they must agree to accept the responsibility. It is only half the job to nominate someone to care for dependents. Ensuring those individuals have the financial resources to provide the quality of care they require is paramount. It is, therefore, an excellent time to make a will so that you can ensure that your life insurance coverage and your financial protections are adequate. Set up a trust to make sure the capital paid out on death is in the right hands. Include pets in your will. Nevertheless, ensure that whoever you nominate is prepared to take on the responsibility.
How Are Sentimental Items Handled?
Do not underestimate the importance of sentimentality, even if you do not have anything of financial value to pass on. You can specify which belongings you wish to give to specific people in your will. Perhaps you should include instructions on how to transfer your belongings in the future.
How To Spend Your Money?
You may not have any value in your estate right now, but life is unpredictable, and you cannot predict how much will be left when you pass away. There is a story about a man who wins the lottery, only to pass away only 24 hours later. We realize it’s unlikely to happen, but many have heard the story. Settle your estate, i.e., rejection of some money may happen once they deduct costs from what you leave behind. You should provide instructions on what to do with that money.
Donating To a Charity
Once settled, you may decide that any money left should be donated to charity. But, again, contributing to the cause you are passionate about is the best way to ensure it continues. They exclude the value of your charitable donations from your estate for Inheritance Tax (IHT) purposes. Therefore, if you suddenly acquired enough money to exceed the threshold, a gift could prevent your loved ones from taking a big tax hit.