You’ll come across many financial documents as you make your way through life. However, few are as critical as a will. People don’t like thinking about wills because they’re associated with death. True, your will won’t be important until you pass away, but this is part of the problem. We don’t see this as a valuable financial document until it is too late. It sounds harsh, but nobody really knows when they’ll pass away. Anything can happen in life, so you have to be thankful for every single day. If this year has taught us anything, it’s that we shouldn’t take life for granted ever again!
As such, you need to create a will – even if you’re young and healthy. Put it this way, if you care about your finances, this is the best decision you’ll ever make. If you’re still not convinced, here are three reasons a will is the best financial document you can ever create:
Protect your finances
The whole point of a will is to keep your finances under wraps. In essence, you will protect your assets when you pass away. Without a will, the courts hold legal power over your estate. Yes, we’re venturing into a confusing territory, but I’ll try to make it as simple as possible. Effectively, your will states to the court everything that you own and where you want it to go. It’s a legally binding document that must be followed. Without one, there’s no legal way of saying where your money and assets should go. Instead, the court will distribute everything as they see fit – which can be very stressful for your family!
Provide clarity when you’re gone
A will also provides clarity for everyone when you’ve passed away. It details all of your assets and where they will go. For example, you may have a house that you want to pass to your children. This will be outlined in the will, along with all your other assets. It prevents instances where family members argue amongst one another – or with the courts. It can also prevent the need for a probate lawyer to come and sort everything out. This document gives clear instructions that everyone has to respect and follow. Therefore, it can stop someone from claiming something that’s not there’s to claim.
Helps you feel more at ease
Even if you are healthy and in the prime of your life, putting a will together makes you feel at ease. It goes back to the first point on protecting your finances. You can carry on with your life, safe in the knowledge that all of your assets are secure. You don’t have to worry about the financial impact your passing could have on your family. In many ways, it lifts a burden you didn’t realize you were carrying.
The bottom line is that everyone that cares about their finances should create a will. Don’t wait until you’re old or sick; do it while you’re healthy. You can amend a will as many times as you like, which means you can tweak it throughout your life. If you want to ensure your assets get put to good use, you need a proper will.