Personal finance is a multifaceted art. While most individuals pay attention to investments, gains and profits, very few look into the tedious legal aspects like wills and inheritance. People defer creating a will until their old age as they feel they have no necessity to do so. But legal complications and its accompanied stresses and strains are difficult to deal with. One must understand the reasons for creating a will and legislation surrounding inheritance to ensure safe passing of property, assess and wishes to who you choose.
Aspects to be Considered before Creating a Will
- Local legislation surrounding wills
- Listing of beneficiaries who would be forming part of the will
- What constitutes a legal will
- How and where you will make it, online or through a local legal service
- What you want to happen when you die
Aspects to be Considered when Creating a Will
Likewise some factors need to be considered when a will is being made. Wills are important legal papers and often its impact is irreversible. So it must be well planned and drawn out with care. Aspects to consider are as follows:
- What happens to the estate on its owner’s death?
- Who are the legal heirs of the estate owner?
- What are the current liabilities of the estate owner?
- Would any existing liabilities by any means affect or get attached to assets?
- Estate Tax and Inheritance Tax
So what is the significance of having a will? Through making a will it will be easier to pass on inheritance. The legal proceeds that follow the death of the estate owner, and how money and assets are handled ,reallyhighlight the need for a will.
What are probates?
Probates are the legal proceedings that occur after the death of the estate owner. If the estate owner dies inestate, i.e. without a will, then the probate court will collect information on the value of the estate in question. They will then asses the liabilities like mortgages applicable and attempt to split the estate and settle all these outstanding loans. After this they identify the legal heirs of the deceased. This process can be straightforward or can induce some complications at times. Then the estate is split among the legal heirs of the deceased.
In case a legal will has been drafted, the beneficiaries are clearly identified and they are therefore settled with their respective shares of the estate. Another advantage from a legal will is that it protects the benefactors from any liabilities that the estate owner may possess and it also reduces the impact of taxes and other levies.
An expert like Lexikin legal wills and probate work through much simplified processed. Through their website you can create an online will, assign and Executor and leave your digital legacy for loved ones when you pass on.