If you are born, you will die. It is a fact of life. Writing a will is not something most individuals look forward to. However, responsible individuals who want to simplify the lives of their children and other loved ones write wills. A will can help you be sure your assets will go to the persons you want to receive them. A will can ensure if both you and the other parent die, your children will be raised by those individuals you want to raise them. There are certain issues in wills people seem to overlook. The purpose of this article is to bring some of these issues to light.
Guardianship
Imagine you and your spouse are in a car. You get hit by a truck and you both die. Dying from an accident can happen at any time. Accidental deaths are unlike illnesses. Illnesses usually come on slowly and kill you slowly. Accidents kill you quickly!
Who Raises Your Children If You Die?
So both you and your spouse are dead, now who raises your children? If you do not write a will and name someone as the guardian of your children in the event you and the other parent die, the State of New York will determine who raises your children.
You know who will have your children’s best interests at heart. You are the most qualified person to appoint someone to raise your children if you die. Writing a will and naming a guardian for your children in the event of your death can give you peace of mind and allow you to fulfill your parental responsibility to protect your children.
Do I Need a Trust?
A trust may be the best way for you to make sure your home, the money you have in the bank, your stocks, your bonds, the money you have in life insurance, your 401(k) and/or your pension go to your children in a manner which utilizes these funds for the children’s best interests.
Let’s start with the proposition minors cannot inherit. Your children cannot receive any of your assets until they are 18 years old. If you don’t write a trust, and you name your children as beneficiaries in your will, they will receive your assets at the age of 18. 18 year olds are not in a position to handle significant amounts of money!
The best way to see to it your funds are distributed in a manner which is appropriate and that these funds are not wasted, is to set up a trust and a scheme in the trust to distribute your assets over time. The difference between money received pursuant to a will, and money distributed pursuant to a trust, has to do with the fact an 18 year old in a will, will come into your funds in a lump sum basis. Whereas funds distributed pursuant to a trust are paid out over a period of time to cover expenses you designate are appropriate utilization of your funds.
