Protecting Your Assets through Will Preparation

According to a reliable probate attorney, a will is the most basic component of estate planning, which should also include a personal directive – also known as a living will – and a power of attorney. Many people believe they are too young to draft a will, or they think because they are single and they don’t have any kids so they don’t need a will.

But everyone needs a wealth management and estate plan, and the most important piece of that plan is the will. Will preparation can be accomplished a number of ways, but the easiest way is to have one prepared for you by expert will preparation, estate planning, and trust services like an estate law attorney or a will and trust attorney. For additional info check out this trust management services or this living trust in California.

Being Prepared

29% of Canadian adults do not even think about preparing a personal will, according to the Lawyers’ Professional Indemnity Company, because they do not believe they can afford one or they are unsure how to begin the process. 56% of Canadian adults have a legal will prepared but they have not yet signed it, as they are unsure if the contents are truly in their families’ best interests. Not having a will when you die – otherwise known as dying intestate – leaves far too much to chance regarding the distribution of your assets.

According to a will attorney, the first step in will preparation is identifying an executor or personal representative of the estate. This person is in charge of wrapping up all the affairs of the descendent, paying any debts and filing the descendant’s last tax returns. It is advisable to name two executors to your estate, as this provides a system of checks and balances to the payment of bills and allows for the proper distribution of assets without worry about dishonest dealings.

Common Myths Surround Wills

There is a resounding belief that if you die without a will and you are married, your surviving spouse will automatically get all of your assets. This is not so. There is always a chance that other relatives can step forward and try to gain all or part of your inheritance and even if that does not happen, the government can decide that your money or other assets should be divided differently than you would have chosen.

This is why it is important to have a current legal will. A probate attorney usually handles the process of estate administration after a person dies. On the other hand, an estate planning attorney can help you devise an estate plan. An estate planning attorney  can explain how your assets should be distributed after your death. Once you do have a will drafted, go over it any time a life-changing event occurs, such as the birth of another child, a divorce or remarriage or the death of someone named in your will. If none of these events occurs in a five-year period it is still a good idea to go over your will once every five years to see if you are still satisfied with the disbursement of your assets.

Other Necessary Paperwork for your Protection

Going hand in hand with the will is the personal directive, or living will. This document protects you in the event that you become incapacitated and can no longer make decisions about your health or welfare. The personal directive indicates whether or not you want any heroic measures taken to save your life in a health crisis. It also indicates how you want your affairs to be handled, and by whom, in the event you can no longer make important decisions about your health by yourself.

Along with the will and the personal directive is the power of attorney. Naming someone your power of attorney is not something to be done lightly, as this person has as much power over your assets as you do once the document is signed.

The power of attorney gives another person permission to make financial decisions for you in the event you are unable to do so. Do not think that just because you are married, you must name your spouse as your power of attorney. Many people find that having a neutral third-party as their POA works out better for everyone, as their decisions are not tainted by being personal.

In Closing

• A well-prepared and current will is a vital necessity for your protection
• A living will allows a designee to make all your important medical decisions should you become incapacitated
• A power of attorney allows a designee to make your important financial decisions should you become incapacitated

For more information on will preparation, personal directives and powers of attorney, contact the financial experts at Morgan National Corporation, 1-866-595-3533, or visit us online on our Health Care Benefits page. We are ready to help you make the most important decisions of your life, to protect your family, your assets and yourself.