Your will gives you the final say – even after you’re gone.
A Michigan court has ruled that a handwritten document from 2014 is Aretha Franklin’s valid last will and testament after the Queen of Soul passed away without a formal will in 2018. This follows a year-long court battle between her sons to determine how her multi-million-dollar estate should be divided.
This is a reminder that drafting and signing a will ensures that your final wishes are respected, and saves your loved ones from a long and potentially expensive legal process. According to research, 45% of people who don’t have a will believe they don’t own enough assets to warrant estate planning – a total misconception.
While most of us will not leave behind a multimillion-dollar estate, everyone has some form of an asset, and having a will in place goes a long way toward helping those who depend on you to live confidently. This doesn’t only include big things like a car or a house.
It should also include your bank account (however small it may be), jewellery, investments, and sentimental items – even digital assets such as photos in the cloud, and cryptocurrency. For parents, your will should also provide for guardianship of your children, and a plan to care for your pets.
Estate planning gives you peace of mind knowing that your intended beneficiaries will inherit, and avoid unnecessary turmoil during an already difficult time for your loved ones.
Some of the human factors preventing people from drafting a will include procrastination, anxiety over ‘who inherits what’, and a tendency to avoid talking about or planning for when we are not around.
If estate planning is not common practice with close friends and family, it may not be considered something to worry about, and we’re less likely to prioritise it. There is also a belief that creating a will is very expensive, but this is not the case.
What to consider when drafting your will
There are several factors to consider when drawing up a will, including one’s marriage regime.
Being married in community of property (COP) has major implications on how your estate is distributed. When couples get married in COP, they create what is called a joint estate. This means that the instructions they set out within the will deal with half of the joint estate.
It also means that half of the joint estate will belong to the surviving spouse. These are important things to consider when weighing up how to divide your estate.
Other things to keep in mind:
- Make sure your instructions can be executed. For example, it is impractical to leave your car to more than one person.
- Drafting a single (or joint) will helps you retain control of your legacy, and ensures that your instructions are carried out as you intend.
- Persons living together in a permanent relationship should also get their wills done. Failure to do so can result in the other partner being left with absolutely nothing.
- As an entrepreneur, having a will in place is a vital part of business succession planning and can help avert potential disasters, such as leaving the running of a business to minors and/or unqualified persons.
- For parents of children with serious disabilities, estate planning is critical as they may never be able to work and provide for themselves.
Make sure your final wishes are respected
A will means that you have the final say, even after you’re gone.
Setting up your will is a simple and inexpensive process, but it can be overwhelming to know where to start.
If your needs are quite straightforward, you can create a will using free online templates from reputable businesses, which is perfect for single persons or married couples who are leaving their respective estates to each other, and people who would like to leave everything to their young children.
If you have a more complex estate and intricate circumstances, it is best to consult a financial advisor who can assist with an estate plan and a will.
There are many benefits of having an up-to-date will in place:
- The Wills Act stipulates that everyone from the age of 16 can sign a will. There is no minimum asset base, so estate planning can begin early and evolve over your lifetime.
- You can decide how your assets will be distributed, which means that you can provide for loved ones in the best way you see fit. It also means you can disinherit people who may otherwise stand to inherit.
- If you have minor children (under 18 years), you can decide who will take care of them.
- Having a will can ensure that your loved ones avoid lengthy and expensive legal processes, especially when dealing with a less complex estate. There will be no uncertainty about your last wishes.
Dealing with the fallout from not having a will in place is something that no one wants to do when a loved one passes.
It is also important to update your will regularly, or as your circumstances change, to ensure that it accurately reflects your wishes.
WRITTEN BY DAVID THOMSON
David Thomson is a senior legal advisor.
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither writers of articles nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.
