Why Should I Have A Wills?

Darren Reed • Jun 02, 2022

Why Should I Have A Will?

There comes a time in every person’s life when they need to get serious about their estate plan. Writing a will is fundamental to ensuring your wishes are carried out after you die, whether they relate to the distribution of your property and assets or the care of your minor children.


Regardless of your age, medical history, and marital status, a will offers peace of mind and could save your loved ones from undue stress and expense. Let’s explore wills, what they are, and why they matter in more detail.


What is a will?


A will is a legal document that outlines what you wish to happen to your assets and young children following your death. If you do not have a will, there is no guarantee that these wishes will come to fruition. What’s more, your nearest and dearest may be burdened by the emotional and financial toll that comes with settling your affairs.


Wills are not all created equally, and some are more widely recognized and legally binding than others.


Who needs a will?

The short answer: every single person needs a will. It doesn’t matter if you don’t own property or investments; a will is still a vital legal document that benefits you and your family. If you are older, unwell, married, a parent, a property owner, or a business owner, writing a will is even more important.


It’s also essential to re-visit your will if your life circumstances change – if you have a child, inherit a property, or divorce your spouse, for example.


Why should I have a will?


Wills are not just for the wealthy or individuals with high-value assets. Everyone should have a will, including you. Here are some of the reasons why:


  • You can decide who your assets are passed on to and how they are divided.
  • You get peace of mind knowing your most valuable assets won’t end up in the wrong hands – an ex-partner you have separated from or an estranged family member, for example.
  • You can choose who will care for your minor children. If you do not have a will, this decision will be left to the court.
  • You protect your heirs from the lengthy and potentially complicated process of securing access to and transferring your assets.
  • You can minimize estate tax through strategic estate planning. For example, you might donate to a charity.


Which type of will is best?


The best type of will is what’s known as a testamentary will. This is a written will and the most common type. You can create a testamentary will yourself; however, to ensure your wishes are carried out, have it prepared by an experienced estate planning attorney. Keep in mind, your will must be signed in the presence of witnesses.


Other types of wills include holographic wills, oral wills, pour-over wills, and mutual wills.


What can I include in my will?


Your will should include how you wish your belongings to be distributed. This includes things like the property you own, cash in your bank account, businesses, investments, and other higher-value or sentimental possessions.


A will can also include any charities, institutions, or organizations you would like to direct all or a portion of your assets toward.


Finally, a will should detail who you'd like to become the guardian of your young children if you die.


It’s worth noting that some of your assets are not covered by the instructions in your will. For example, you cannot nominate beneficiaries for your life insurance policy payout. Nor can you specify the distribution of investment accounts that have already assigned the ‘transfer on death’ option.


What happens to jointly owned property?


If you own property jointly with your spouse, you likely have a right of survivorship. This means that if one spouse passes away, the other receives full ownership of the property. The right of survivorship can also apply to joint ownership involving unrelated individuals.


If your spouse will obtain everything after you die without a probate proceeding, do you really need a will? Yes. You absolutely do, and here are three reasons why:


  • Suppose you and your spouse die simultaneously. Without a will, your property may end up with someone other than your desired heir.
  • While you might own your home jointly with your spouse, your other valuable possessions might be yours and yours alone. Even if you share everything with your partner, there is still the possibility of an unexpected windfall before your death.
  • If you hold all of your property in joint tenancy, you may not be able to take full advantage of tax-saving estate planning strategies.


What happens if I die without a will?


If you die without a will (called intestate), the state will typically use a formula to determine the distribution of your assets. In most cases, half of your estate will go to your spouse or partner, and the other half will go to your children.


However, time- and energy-consuming complications can arise. For example, the state may mandate the sale of your family home or assets to ensure even distribution. Or, if your children are minors, representatives nominated by the state will protect their interests.


Dying without a will can result in higher taxes, too.


The bottom line: You need a will


To ensure the best possible scenario plays out after your death, you need a will. A will not only protects your property and assets, but it alleviates any burdens on your family members.


The good news is, preparing a will that clearly outlines your estate planning wishes doesn’t have to be difficult or stressful. With the help of a trusted and experienced estate planning attorney, you can safeguard your belongings and protect those nearest and dearest to you. Even better, in some cases, you can leverage estate planning approaches to save money.


If you would like help preparing your will, reach out to the friendly team at Reed & Reed today. We would be more than happy to help or to answer any questions.

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The investment growth from a 529 is tax-free (state and federal). You cannot contribute any more money to the 529 once the account balance hits $529,000, although the balance can still go up due to the growth of investments. The beneficiary is usually a child or grandchild, but can technically be anyone, even you. They don't even have to be part of your family. When it comes time for the beneficiary to go to school, you can withdraw a maximum of $10,000 for each of them annually to pay for qualified expenses without the earnings portion incurring tax liability. If withdrawals go towards expenses that are not qualified, the earnings portion will be considered income and taxed. Additionally, you may have to pay a further 10% in federal tax and 2.5% in state tax. The school can be public or private — or even religious — and does not necessarily have to be located in California. Apprenticeship programs also qualify. 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What to Expect in Filing a Law Suit?

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Defendant Response After receiving the complaint, the defendant is required to respond with their version of the events. The court will give them a set amount of time in which to reply. In the answer to the complaint, the defendant may admit or deny the plaintiffs’ claims or offer counterclaims. In some instances, they can also name others as defendants. The defendant’s answer may also ask the plaintiff to clarify or correct parts of the complaint. They can also request that the court dismiss all or part of the lawsuit and give reasons or evidence for the dismissal request. The Scheduling Order After the complaint has been filed and answered, the judge assigned to the case will issue a scheduling order. This document will set up a timeline for the exchange of information between the parties, make deadlines to file motions for the case, and set a date for the first hearing. Discovery Discovery allows both parties in a civil lawsuit to request and obtain relevant information from each other. The court provides specific guidelines for the disclosure of this information. If one party fails to respond to the other’s request, that party may file a motion to force the release of the information. During discovery, the plaintiff, defendant, witnesses, and experts may be asked to provide testimony under oath. Additionally, lawyers can gather information through written questions known as “interrogatories.” All the information collected during discovery can be used during litigation unless one party files a motion to keep the other from using it. The judge will then decide whether or not the information in question can be a part of the case. Motions Motions involve formal requests by either party asking the judge to make specific decisions about the case. In a civil case, many motions include a request for dismissal of all or part of the case. They can also request the inclusion or exclusion of a particular piece of information or evidence. Usually, motions include a written brief that explains the legal argument for the request. The motion can also include supporting evidence or statements. The opposing party has a chance to see the motion before it gets submitted to the judge. The judge will consider the brief and evidence and either issue a decision immediately or schedule a hearing so that the two parties can present oral arguments about the motion. The judge will then issue a decision. Case Evaluation and Settlement Options In some states, civil cases get referred to a panel of legal experts who perform a case evaluation. They weigh the facts and decide if the arguments have merit. They can also issue a decision about what they think is a fair settlement amount. 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In civil trials, the onus is on the plaintiff to prove wrongdoing. After both sides present their case, the judge or jury makes the final decision. If the defendant is guilty of wrongdoing, the court will also issue a rule about the amount of monetary compensation or other types of restitution that the defendant must make. Appeal If you are not satisfied with the verdict, you have the right to appeal the decision. The defendant has this same right. In an appeal, another judge revisits the first court’s decision. Lawyers can file additional briefs to explain why they think the original judgment should be affirmed or reversed. The appellate court judge will then issue a ruling. Despite the well-defined steps for filing a lawsuit, it is usually best to rely on a lawyer with experience in civil court to help you navigate the case and give you the best chance for your desired outcome.
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