In my last post, I discussed the most important reason for having a will - you, rather than the state, get to control the distribution of your assets on death. There are many other significant reasons for having a will. Here are five of those reasons:
1. In your will, you can name the person (executor or personal representative) to carry out the directions in your will and to dispose of your property in accordance with the will's terms. Your executor may be a relative or a close friend. However, if your estate is large or complicated, you should consider appointing a professional or institution (e.g., trust company) accustomed to dealing with the distribution of assets.
2. A will can provide for the terms of a trust in which a trustee can manage assets on behalf of the trust's beneficiaries for many years after death. This may be very appropriate in order to manage assets for the benefit of your minor children. This type of trust is called a "testamentary trust" since it is created through your will and comes into existence at the probate of your will.
3. When there are minor children, the will can nominate a guardian of each child. If there is no provision, the court will name the guardian based on available information and depending on who volunteers.
4. Even if you have a living trust which holds most of your assets in order to avoid probate, it is still important to have a will which will "pour over" into the previously established trust any assets which were not transferred into the living trust.
5. A will gives you an opportunity to minimize estate taxes and other transfer costs and provide who will bear those costs.
To summarize, a will provides control over many end of life affairs. Everything from the distribution of your assets to the care of your children. Do you need a will? Yes!
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