If you are making an estate plan, a good place to start is by writing a will. This isn’t necessarily the only document you need—you may also use a power of attorney or set up a trust. However, a will is the foundation of the estate plan.
Why is a will so important? There are many benefits, along with the fact that it helps you get the process underway. Here are three main reasons to write a will.
1. You can choose an estate executor
Drafting a will allows you to choose the person who will act as your estate administrator or executor. They will handle your affairs, such as distributing your assets and paying off any remaining debts. Things can go smoothly if you choose the right person for this role, and it’s beneficial to talk to them in advance to ensure they’re willing to take on the responsibility.
2. You can leave clear instructions
A will also lets you leave instructions for your estate executor. How do you want your assets to be divided? Who are your chosen beneficiaries? If you pass away without an estate plan – known as dying intestate – state law will make these determinations for you. Writing a will gives you the opportunity to make these choices yourself.
3. You can reduce the odds of a dispute
Estate disputes between beneficiaries can still happen even if you have a will, but they are less likely. Without an estate plan, beneficiaries often get into disputes over what they think you would have wanted. By drafting a will, you can clearly communicate your wishes and help avoid these confrontations.
If you’re interested in creating an estate plan this year, carefully consider the legal steps you’ll need to take.