How To Plan Out What To Leave With Your Inheritance

Photo by Andrea Piacquadio

If you are wealthy, inheritance can be life-changing for your next of kin. That is why you must have everything arranged so your family gets all your inheritance. It is an opportunity to change their life so make sure you do it right.

There are many benefits to inheritance as it can help pay off a mortgage, buy a new house, finish off education, or invest for their retirement. 

The options are endless with inheritance. However, people will believe that inheritance will last forever. 

However, your next of kin is unable to do that unless you have already sorted your inheritance. Let's look at how you can set up your will for your family.

Create A List Of Who You Want To Receive Your Inheritance

Creating a list for your will is very important. You also need to pick an executor and this needs to be a family member or friend. Make sure you make them aware that they are the executor as well, once you have picked your executor. You need to work out who will be included in your will and these are known as beneficiaries.

It shouldn’t take you too long and should be those who you are close to. Firstly, your partner should be included in the will and after that, it needs to be your children, brothers and sisters. 

If you want to leave some to your friends or a charity then you can but in most cases, it will be close family members.

Take Note Of All Your Assets

The next step is to make a note of all your assets and this will take much longer. Start easy by working out your savings, investment money, and valuable objects that you may have. 

It could be heirlooms or jewelry pieces. Once you have done that, you need to work out the more technical part of your will.

The next step is to work out your pension and who you wish to give this to. Something else you will need to consider is your business, that's if you own one. You also need to consider your investments if you have any. 

That includes stocks & shares, bonds, and funds. Property is the final asset on your list. If you only own your home then that is easy however, if you have multiple properties, you need to include those as well.

Think About How You Are Splitting Your Money and Assets

Figuring out who you will leave your will to is the difficult part. It is completely up to you. However, there are five different types of legacy you can leave. There is; a specific bequest, pecuniary bequest, residuary bequest, reversionary bequest, or a trust.

Specific Bequest

A specific bequest is when you are looking to give a specified item to an individual. That could be anything such as a piece of jewellery, a car, a house or any other type of asset. It could also be a family heirloom such as luxury cushion covers, a war medal, an engagement ring, furniture or anything that means something to your family.

Pecuniary Bequest

That is when a fixed sum of money is agreed however inflation can affect the value of this money. Therefore, the longer this amount of money is not given, the lower its value will be when the time comes around. 

It leads to people investing their money so it counters inflation. If you want to give people money, it is better to give them an investment.

Residuary Bequest

A residuary bequest is where you give all of your property or some of the property. It is after all your debt, expenses and your other specific bequests.

Reversionary Bequest

A reversionary bequest is the next person who is in line for the gifts if the person you originally proposed has died before you.

Trust

This grants access to the named trustees to control your assets on behalf of the other trustees. In some cases, you may have to specify which beneficiary goes to which trustee.

Finally, Check If You Have To Pay Inheritance Tax

Inheritance tax only has to be paid when the value of your property is less than £325,000. You also don’t need to pay inheritance tax if they are giving all property above £325,000 to your spouse. 

The other reason, and final reason, is that you don’t have to pay inheritance if you leave all your property above £325,000 to a charity.

When to Write a Will and What to Put in It

Writing a will is an important part of estate planning. It allows you to ensure your assets are distributed in the way you want and that your wishes are honored after you pass away.

This can be especially important for retirees, who have likely built up a good amount of money and other assets over their working years.

If you’re wondering when to write a will and what to put in it, read on for some helpful information.

When Should I Write a Will?

Ideally, everyone should write a will as soon as they become financially independent or start accumulating serious wealth. That said, it’s never too late to create one. 

Even if you’re nearing the end of life, writing a will can help ensure that your wishes are carried out after you are gone.

Is It Ever Too Late to Write a Will?

Actually, there is still time to write a will. If you're older or in poor health, creating a will can give you peace of mind knowing that your wishes will be fulfilled after you've gone. 

It can also help prevent loved ones from going through the probate court process when distributing assets and belongings. Furthermore, a will can provide clarity for those you care about on how to handle your estate and other matters. 

Writing a will also helps ensure that any debts or taxes are paid properly, according to the law. Taking the time to create a will is important in ensuring that your wishes are honored after you pass away.

What Should I Put In My Will?

Your will should include comprehensive instructions about how you would like your possessions distributed after death. This includes both monetary and non-monetary items such as jewelry, heirlooms, cars, real estate, and more. You should also name someone (or multiple people) to serve as executor of your estate once the time comes.

This person (or persons) will handle all the paperwork associated with settling your estate according to the instructions in your will. Additionally, if applicable, you should detail who should take custody of any minor children listed in the document. 

You may also use your will to specify how those children should receive their inheritance so they don’t receive it all at once but over an extended period or upon reaching certain milestones or ages (such as 18 or 21).

Finally, if desired, you may choose to make charitable donations from any remaining funds once all other provisions have been followed through with.

What Should I Not Put in My Will?

Keep in mind that a will is not the place to put certain sensitive information. While it is important to include specific instructions and designations in your will, there are also some things you should never include. These items can be legally binding but may not be in the best interest of those involved.

For example, it’s generally unwise to include personal grievances or hurtful words directed at anyone mentioned in the document. You should also avoid including any provisions that could potentially conflict with state law as they may be ruled invalid by a court of law. 

Additionally, while naming executors and beneficiaries can provide clarity for loved ones on how assets should be handled after death, wills are not the appropriate place to dictate who receives what assets from an estate. 

Such decisions must ultimately fall upon those named as executors or trustees of an estate according to state laws and regulations governing estates.

Who Should I Contact to Write My Will?

There are numerous professionals you can contact to help you write wills. Depending on your needs, you may want to consult a lawyer or financial advisor who specializes in estate planning and wills. 

Alternatively, many online services can help guide you through the process of creating a basic will quickly and affordably. 

No matter your choice, it’s important to ensure the person or service you work with is reputable and reliable. It’s also a good idea to have at least one trusted individual review your will before finalizing it. 

Doing so can help ensure that all the points of your will are correct and legally binding.

Is There Anything Else I Should Know?

It’s important to note that you should keep your will up to date over the years, as major life events may require changes or additions. For example, if you get married, divorced, have children, buy a new home or other property, or make any other major change in your life, you should update your will accordingly. 

Additionally, you should keep multiple copies of your will in a safe place so it can be accessed by your loved ones when the time comes. It’s also recommended that you review your will periodically to ensure it reflects your wishes accurately and is up-to-date with any changes in the law. 

As long as you keep these points in mind, you should be well on making sure that your estate is distributed according to your wishes.

Writing a valid last will and testament is an important part of estate planning for retirees who have accumulated significant wealth over their lifetime that they would like dispersed according to their wishes after their passing away. 

Although there is no set timeline for when one must write a will—it’s never too late!—the sooner it is done, the better off everyone involved may be in the long run.

With these points in mind, retirees can rest assured knowing they are doing everything they can to make sure their assets are handled according to their desires once they pass away by writing a valid last will and testament early on. While still able to do so themselves with clear thought processes intact, they can leave behind peace of mind and worldly possessions when they pass on.

5 Reasons to Meet With an Attorney to Write Your Will

Many people put it off writing a will until it's too late. This is often because they don't know where to start or think they don't have enough assets to warrant meeting with an attorney. 

However, there are many reasons why you should meet with a will attorney sooner rather than later. This blog post will discuss five of the most important reasons.

What Is a Will?

A will is a legal document that designates who gets your property after you die and how you want your property distributed. If you do not make provisions in your will for someone else to receive your property, your property goes through probate.

Protects Your Interest

The first reason you should meet with an attorney to write your will is to protect yourself. You may be surprised by what happens if you die without making any provision for someone else to inherit your property.

Keeps Your Family Together

Another reason why you should meet an attorney to write your will is so that you can keep your family together. So many families get separated because one person dies, leaving behind no will. 

Without a will, the deceased person's spouse (or other relatives) could end up getting nothing from the deceased person's estate. Having a will written up ensures that everyone gets what they deserve.

Helps You Avoid Probate

Probate is the process whereby your property passes through court proceedings before being given to the rightful owner. It takes time and costs money. Therefore, if you have made adequate provisions in your will, you can skip the probate process altogether.

Saves on Taxes

Another reason you should meet a lawyer to write your will is to save on taxes. If you don't have a will, the government has to go through the probate process to determine who inherits your property. They also have to pay out all of the inheritance tax owed. A properly drafted will avoid these problems.

It Provides Guidance on Inheritance

When you create a will, you can designate exactly how much each beneficiary will get upon your death. So, for example, if you name your children as beneficiaries but only give them $10,000 worth of inheritance, then the rest of your property would go to your spouse.

When writing a will, you need to remember that it is better to plan than to regret it. So, if you haven't already met with an attorney to draft your will, now is the perfect time to schedule an appointment with a will attorney.

Legalities to Consider When Leaving an Inheritance to Minor Children in Your Will

If you are thinking of leaving bequests to minor children in your last will and testament, you should keep several things in mind. If the children receive an inheritance while they are still under the legal age of adulthood, gifts of value like money, investment shares, or anything of significant worth may be held in trust until they become adults. 

Here are considerations that may impact a child’s inheritance.

Child Custody

Children of divorced parents may be experienced with shared parenting, which means both parents oversee the financial interests of their kids. If an inheritance is left under the supervision of one parent or the other, it needs to be designated that way. 

Otherwise, either or both parents may try to gain control of the inheritance and possibly misuse it before the children reach legal adulthood.

Trusteeship

You can designate another relative or someone outside the family to serve as trustee of the children’s inheritance until they are old enough as stipulated in the bequest to receive the gift as an adult. However, the trustee should give consent and understand the terms of the bequest before you add that person to your Will. 

Considerations for any person to serve as trustee include that person’s age, health, and other responsibilities. For example, if the trustee is in the military before the kids reach legal age, could the trustee be serving overseas in a role that would make it difficult to return to the U.S. if needed?

Specific Designations

If you bequeath financial gifts to minor children without strings or guidance, the money can be used for anything when the kids grow up and receive the inheritance. If you want them to use the funds for college, travel, a car, or another specific expense, that should be clearly spelled out in your Will. 

If the gift is to be used for college, will the children receive it as soon as they enroll in college classes, when they successfully earn passing grades for a semester of courses, or when they receive a college degree?

Legal Questions

As you can see, leaving an inheritance for underage children can be challenging. It is important to be sure that your bequest is clearly explained and that the person you want to care for the gift until the children grow up is capable of doing so. Consult a trust attorney for help with arranging this type of inheritance so there will be no problems later.

Plan your bequests ahead of time by considering the details. Consult a legal authority who can help you make adequate arrangements for leaving minor children an inheritance.

Six Things Everyone Forgets to Include in Their Will

Making a will is one of the most important things to do, but many people never bother to do so. A living will is a legal instrument designed to provide protection and support for those that will be negatively affected by your death. Even worse, those who have wills often forget some very basic considerations. Make sure your will includes provisions for these important aspects.

Review Your Will

A will is a living document and needs to be reviewed at least every other year for changes in the inheritance laws. Through the years, people become adults, they marry, have children, and become involved in schemes or business you may want to restrict. In short, everything changes and your will should change with it. In nothing else, updating your will shows that you are aware of its provisions and desire to continue with the exceptions of changes that you make.

Get Your Ducks All in a Row

Some items of personal property are not superseded by the will. This includes designated beneficiaries of life insurance, survivor’s benefits, and other items. For example, if you work life insurance lists your mother as the beneficiary she will get the proceeds even if your will says these should go to your wife and children. It is a good idea to simply re-designate beneficiaries every three to five years and to keep a list of who receives what with your will.

Owning Your Life Insurance

You might want to pay for the premiums on your life insurance, but designate the ownership to a trust or someone else besides you. The reason for this is while beneficiaries don’t pay income tax on these proceeds, if you own it, the payout will become part of your estate for tax purposes, regardless of what the will states. Don’t let the value of these items cost your family a bunch of estate taxes. 

Not Designating Personal Property in Your Will

Do you really want the people in your family fighting over your clothes, or a carefully preserved collection of baseball cards? It is far easier on everyone if you designate what you want to happen to your personal property, and this includes pets. If possible, provide several options in order of precedence. Let’s say you want your son Tom to take your cat. However, Tom can’t take your cat; his wife is allergic. So, include a couple of options so kitty doesn’t end up at the pound, or your collection in the trash.

Using an Online Kit to Do Your Will

Take the time to find a lawyer in Newmarket who is an expert in estate law to assist you with your will. If you can’t afford this now, a kit may be better than no will at all. But, as soon as you can, get that SBMB Law expert involved. They are worth the cost. Remember, each states has separate laws regarding inheritance, and of course, there are federal statues as well.

Leaving Bequests That Don’t Exist

If you leave bequests that cannot be realized by the value of your estate after the debts are paid, then decisions must be made. This could land your estate in probate, or other types of court as your heirs sue for their share. Don’t do this. Keep your debts and your bequests reasoned out and review them frequently. Remember, your funeral costs will come out of the estate as well.

As you can see, there are a great many details to include when looking at putting together a will. This is not a procedure that should be rushed, but attended to carefully by each of us.

How an Inheritance Funding Advance Could Help Your Family

Are you expecting an inheritance that you may not immediately receive? If you need to pay for expenses while the paperwork moves through the courts, there is a reliable solution. Although many inheritances are resolved quickly, inconsistencies in the will could mean you are waiting months before the funds are available. 

While you wait for a judge’s ruling, bills pile up and cause their own set of issues. On the other hand, an inheritance funding advance is easy to obtain, and it provides you with upfront cash to help you pay for what you need. 

Why Do You Need an Inheritance Advance? 

Losing a loved one is never easy, but when they leave behind dependents, being unable to access the money they left behind can create hardships. This is especially true if the inheritance will be used to pay for an elderly relative, children or a relative living with disabilities. However, there are several reasons why an inheritance can be delayed. In some cases, this delay can last for several years. 

Why is My Inheritance Delayed? 

When a person dies, the courts can become involved for several reasons including wrongful death or inconsistencies around the cause of death. In some cases, it can take coroners several months to determine why a person has died. 

This means that the death certificate is on hold, and this delays dispersal of any inheritance monies. Nevertheless, the primary issue that can delay an inheritance includes probate court and inconsistencies in the will. In some states, probate court is called surrogate or orphan’s court. 

Can I Get an Inheritance Loan for an Intestate Death? 

When someone dies, the estate that they leave behind is dictated by the last will and testimony. In this case, this is referred to as a testate. Sadly, when a person dies and does not leave a will behind, this is termed as an intestate death and all property falls into the courts’ hands. In these cases, an inheritance loan can still be obtained upon review by a lending agency. 

How Do Inheritance Advances Work? 

When you apply for an advance on an inheritance, the paperwork is carefully reviewed by loan officers. Although you may not understand the legalese of the process, the trained professionals involved will help you determine why you are accepted or denied. Once the application is approved, the next step is dispersal of the loan. 

Typically, a bank will give a loan and charge an interest rate along with a monthly repayment plan. On the other hand, when you use an inheritance loan service, they typically charge a fixed rate. This means that you will get your estimated inheritance advance in a lump sum minus the fees of the loan agency. When the inheritance is finally approved by the courts, the loan advance company will collect what is owed to them. 

What If I Do Not Get My Inheritance? 

In rare cases, the people due for an inheritance are denied their benefits from the courts. This action can be appealed, but it certainly makes everyone nervous. If this occurs, the proper course of action is to repay the loan as if it were distributed by the bank. 

Regardless, most people do not need to worry about this unique mishap. Instead, many satisfied customers will tell you that getting an inheritance advance beats paying late fees and discontinuation fees from overdue bills. For all of these reasons, when you need an advance on your inheritance, do not hesitate to utilize a company like Inheritance Cash Advance to call on the advice of professionals.