Estate planning is easy to put off, possibly for years. Creating a will can give an adult control over their legacy and can help them ensure their loved ones receive support when they pass. With a will, a testator can name each of their beneficiaries and designate specific property for them to inherit. Testators can also nominate trustworthy individuals to hold key positions of authority during estate administration. Quite a few people never actually create wills. According to recent polls, just under one in three adults currently have wills in place for their protection.
Many people choose arbitrary future events as signifiers that it may be time to draft a will. The three experiences below are all scenarios that make the establishment of a will particularly important.
Becoming an adult
Once a teenager becomes a legal adult, they can begin acquiring their own resources and preparing to live independently. They may have close friends and romantic partners with whom they share certain resources. Without a will, a person’s roommate or intimate partner has no right to receive any of their property. Young adults who have recently begun living independently may want to draft wills, especially if they share resources with close friends or romantic partners to whom they have no legal ties.
Becoming a parent
The birth of a child is often the main incentive for those who decide to establish estate plans. Parents typically worry about who might support their children if they die and want to ensure their children have financial resources when they are not around to provide for the child. New parents often draft wills so that they can name a guardian for their children in the event of an emergency. They may also want to consider creating a trust as a way of preserving property for their children.
Acquiring a home
For many people, becoming a homeowner is their number one long-term financial goal. After achieving that goal, they likely want to ensure that the right party receives their equity after their passing. Some people can achieve their property transfer goals with a deed by arranging to have co-owners inherit their interest at the time of their death. For those with children or other loved ones who may not be on the title for the property, a will is an excellent way to ensure that the right people inherit accumulated home equity.
Taking the time to draft a will or update existing documents as circumstances change can give people peace of mind and financial protection. There is no time like the present to get started.