One of the only constants in life is that unexpected circumstances can and will occur from time to time. In the most severe of instances, a sudden death can place a great deal of strain upon any family. Not only does this equate to emotional duress, but the financial and legal ramifications are other effects which should never be taken lightly. These are some of the main reasons why writing a will is so very critical in these modern times. Let us look at some of the advantages of these preparations as well as the consequences of not having a legally approved will when it is needed the most.
From a broad perspective, the main purpose of a will is to expedite the legal and financial processes that will inevitably occur upon your death (or the death of a loved one). A will is the most effective and thorough fiscal vehicle that will protect those closest to you. Partners or unmarried couples can be at an even more pronounced risk. In this instance, the other half will not be recognised upon the death of their partner without such a document.
The writer of the will can designate a number of beneficiaries. These individuals are then able to inherit investments, family heirlooms, trusts, property and indeed any other assets which are considered to be of significant value. Donations are also addressed by a will. Anyone who wishes to leave a significant portion of his or her estate to a third-party can do so in writing. This is an excellent way to leave a lasting legacy.
Inheritance tax in the United Kingdom can be crippling for family and loved ones who have not bee provided with a will. This legally binding document can dramatically impact the levels of tax that is obligatory. In return, a greater amount of liquidity is made available when it may be needed the most.
There are instances when the lack of a written will can cause a great deal of conflict within a family. A legally binding document is able to take conjecture and guesswork out of the proverbial equation. Responsibilities are made clear and in return, the entire process of asset distribution is notably streamlined.
Although we touched upon some of the downsides associated with failing to write a legal will, these metrics should be addressed in more detail.
A will enables a parent (or both parents) to name a legal guardian upon their death. Without this provision, young ones could very well find themselves in the care of the state.
Once again, arguments and misunderstandings can come into play here. There have been times when lengthy legal battles were the result of the lack of a will.
Without a will, the distribution of assets such as land, possessions and investments can be convoluted at best. This is a major drawback for loved ones who may hope to settle their obligations and responsibilities quickly.