Reasons Not to Write Your Own Will
Ever considered writing your own will? While you can draft a will on your own, there are plenty of reasons why you may not want to go that route. Most people do it to save money, but they may overlook or forget to take care of some important details – details that could eventually cost them much more than the amount they could save. Some of the biggest mistakes include:
Ignoring state law differences. Will kits and online wills may not always take state laws regarding the administration of probate into account. An estate planning attorney can inform you of these state laws; a will kit or website may not.
Not revoking an earlier will. Many wills contain boilerplate language that automatically revokes any preceding will. If you are writing your will totally on your own (some people still do), you may not realize the necessity of such a clause.
Assumptions. If you will property to an heir, what happens if you outlive that heir? What if you will an asset to a friend or relative today and that asset is gone when your will is executed someday? These are important things to contemplate; things that most people who write their own wills have not considered.
Vagueness. Sometimes executors are not given enough power by the language of a will. Sometimes a home will be left to a spouse, but with no one assigned to pay for upkeep of the home during the rest of that widow’s lifetime. Alternate executors are sometimes omitted from wills, and names of nonprofit groups can easily be misstated or misspelled, inviting complication and possible dispute of charitable intent.
Keep in mind this article is for informational purposes only and is not a replacement for real-life advice. You may want to consider consulting a legal professional before making any changes to your estate strategy. Instead of searching the Internet or the Yellow Pages for a stranger, ask your Shepherd Financial wealth advisor for a referral.
Life Insurance at an Early Age
Perhaps you’ve heard the maxim, “Preparation is the key to success.” But when it comes to life insurance, knowing when to prepare is almost more important than the preparation, itself.
Sure, it can be difficult to think about life insurance as early as your 20s, but life moves pretty fast sometimes. Before you know it, you’ll be in your 30s and possibly supporting a family. Even if you have a different life plan, taking care of those who matter most is always a wise move.
Many consumers believe they simply can’t afford life insurance on top of all the other bills they pay at an early age. That’s a valid concern! After all, you should never engage in any sort of financial venture beyond your means.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
Insurance can be an intimidating topic, but it doesn’t have to be. Even if right now isn’t the best time to purchase life insurance, discussing the future is a smart move.