It’s something most of us want to do, but not many of us manage to do in the best way possible. Setting up our estate and making a will is as much a part of financial planning as funding your retirement, investing your savings and building a portfolio.
It’s important to have your estate in order so that everything you are working hard to achieve in your life is handled the way you want. Here are a few tips to make sure that your wishes are clear when you are not around to explain for yourself.
Someone other than yourself needs to know where it is. Make sure your executors and at least one beneficiary know where your will is stored. If no one knows where your will is it’s the same as not having one.
Keep your will up to date. Review your will when circumstances change, births, deaths, marriages, divorce, buying or selling assets, setting up family trusts or taking out a major loan will all impact upon the nature of your will and the allocation of your assets.
Make your wishes clear and specific. If your intentions are not clear – if they can be interpreted in more than one way – you’re leaving your estate open to dispute. It can happen easily so be sure to get your will drafted by a professional.
Make sure any changes you make are done professionally. Don’t make changes on notes or rewrite an informal will, they can cause confusion and delays.
Don’t use beneficiaries as witnesses. Using a beneficiary or their spouse as a witness could mean any gift to them is invalid and they will not be entitled to any part of your estate.
Choose your executors carefully. Avoid appointing someone as an executor who might have a conflict of interest, such as a business partner, older people or people who might not be capable because of a lack of experience or knowledge in financial matters or because of time or business pressures.
Preparing your estate and making your will is an essential part of your financial plan don’t leave it until it’s too late and be sure to get professional advice.
Reference
McIntyre, J 2001, What I Didn’t Learn at School But Wish I Had.
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