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http://www.gccihome.com/life-insurance/
When You Die, What Does A Will Do?
By Stuart Simpson, Fri Dec 9th
I know it may sound simple, but there are things a Will does andcertain things it cannot do. Most people don't have a will anddon't even want to talk about it since it relates to death. Alot of people don't even have life insurance, either. I had aboss that was speaking to his accountant one time, "If I die-"started my boss, and his accountant said, "There is no "IF", itsjust "WHEN". We all will die and it would be nice to have a willto help your family decide what to do with your money andbelongings. Why do you need a will? Would you rather probate courts decidethe fate of your children? The court decides where the kids aresent for foster care. That should be enough to scare you out ofyour shoes. The court will also decide what happens to yourassets. Yes, all your stuff and money. So you may have money anda nice house, then its all gone and the kids are sent to thestate home. I know, it sounds harsh. So what can a will do for me?
a will can indicate where your assets and property go.You can also name a guardian for your children and theirproperty. You can also name an executor to administer the will.This executor can be given powers and compensation for takingcare of your estate. But here's the tricky part - a will can't override anything witha named beneficiary. For example, your life insurance has abeneficiary that was established at the time you wrote thepolicy. Also, a will can't nullify the terms of a trust you'veestablished. So what should you do? Inventory your assets that will passthrough the will. Like checking accounts, CD's, stocks, bonds,real estate, etc. These are called probate assets. Nonprobateassets would include things like your life insurance. Theseitems have named beneficiaries. Make a list of your beneficiaries and decide what you want themto have. If you have children from your current marriage, thenthe decision would probably be very easy - give the items toyour spouse. If you have kids from a previous marriage, plancarefully and list them as well as their relationship so theexecutor will have no questions and will hopefully limit anyonecontesting the will.
I hope this gave you some idea as to why a will is an importantplanning tool
not for you, but for your family. You don't make awill for yourself, as you
will be dead, you make one for yoursurvivors. |
