What is a will and why do I need one?
Let’s jump right in and get casual with words like death, die and mortality. I mean, we may as well, we’re talking about Wills here after all. The only time a Will becomes relevant is when you die. (And there are only so many death analogies like “popping daisies” or “kicking the bucket” that I can use to get around the word ‘die’.) The thing about dying is that it doesn’t affect just you - let’s face it, you’ll be dead. Those you leave behind are the ones affected by the assets you’ve acquired during your life (kids included!). Your wishes for how these assets are dealt with when you’re six feet under is what a Will takes care of.
What is a Will?
Your “Last Will and Testament” = your last wishes, carried out when you’re dead. (Let’s call a spade, a spade okay?)
Your “Last Will and Testament”, usually just called your Will, is a legal document that says how, when and to whom your assets get dished out when you die. The assets you accumulate in life might include things like money, property, art, cars, businesses.
If you have children, then your Will will also say how and by who those - arguably your most precious assets - get looked after when you die.
You need a Will because…
Having a Will allows YOU to choose who gets what and how they should use the asset, versus your assets being shared out by the State. For example, you may want your art collection to go to your husband with a clear wish for him to sell the art and put the money towards a round-the-world trip.
When you sign your Will, you choose what’s called an executor - this is the person in charge of actually wrapping up your estate. You can choose someone you know and trust versus having an unknown executor appointed once you die.
It’s not nice to imagine your loved ones getting scrappy over your stuff, but it can happen. A well written Will can help avoid family arguments about who gets what.
Keeping an updated Will allows you to keep legal record of all of your assets - especially those that your loved ones might not be aware of. Remember that Porsche you bought secretly during your mid-life crisis? Yip, that one…
Having a proper Will in place is a way to reduce inheritance tax. Done properly and under legal counsel, you can structure your assets in such a way that they don’t become part of your general estate when you die. Optimised tax equals more money for your loved ones.
Don’t have a Will yet?