Will and estate plan are two of the crucial tasks that you should complete on time. These two hold great significance in your life, so you should also be aware of both terms’ critical aspects.
If you know it, this blog is a must-read for you.
Moving forward, we will discuss the will and estate plan and the right time to create both documents.
So, let’s get started!
Will
A will is a legal declaration giving the testator the authority to name the people who would inherit his estate after his death. An individual can write down plans that he would like to be carried out after his passing, clearing any confusion about how his property should be distributed.
When creating a will, you can choose an executor who will fulfill your wishes after your demise.
One interesting thing to remember is that a person who makes a will can only change it while still alive. In the event of his death, it cannot be changed. There are few details about the will than only an experienced lawyer providing services for Wills and Estates Lawyers Adelaide for years.
When Should You Create a Will?
Anyone over 18: The only legal requirement for writing a will is that you need to be a legal adult, so you are 18 years or older. Other than that, it’s personal preference. But the truth is that most 18-year-olds won’t need to make a Will right away because they don’t own much at that age. But you should only set one up after you have at least one of these:
- You are married
- You have a child or children
- You have a significant inheritance.
- You have a significant amount of assets such as investments, property or cash.
Estate Plan
An estate plan goes beyond just a will. It’s a comprehensive strategy to manage your assets and ensure their smooth transfer during your lifetime or after your death. This can include:
- Trusts: These legal entities can hold assets and distribute them according to your wishes, potentially minimising taxes and protecting beneficiaries.
- Powers of attorney: This document allows someone you trust to make financial or medical decisions on your behalf if you’re incapacitated.
- Beneficiary designations: Naming beneficiaries on retirement accounts, life insurance policies, and other assets allows for a smoother and quicker transfer outside of probate court.
When Should You Create An Estate Plan?
There’s no single “right” time for an estate plan, but here are some situations that call for one:
When Purchasing Property – You need to have an estate plan ready before you sign a contract to buy any property, whether it’s a house or an office block for your business. This keeps your property from getting stuck in the long inheritance process.
After Marriage, Divorce, or Remarriage – If your marital status changes, your estate plan needs to change from married to divorced. This is even more important if you are married again, as this will protect your new spouse.
Birth of First Child and Each One After – The birth of a child is one of the most apparent events in life that should make you talk about your estate plan. As a parent, you should care as much about who gets custody of your young children as you do about how your assets are split. If you are married or have been together long, you should discuss the best person to care for your child or children. When your kids are ready to handle their legacy, it is another essential thing to consider. In case you die too soon, you should also take steps to make sure they will be able to pay their bills.
Summary: We can not change our future, but we can prepare to secure our family’s future. Above, we mentioned how you can ensure your family receives your legacy in terms of your assets.
We hope you consider the above points, and during the entire process, if you need assistance from experts, contact our experts at Jackson Legal. You will get suggestions from the best Probate Solicitor.