Welcome to Extreme Investor Network, where we provide unique insights and advice on all things personal finance. Today, we’re diving into the importance of writing a will and why it should be at the top of your financial priority list.
According to a recent study from the Center for Retirement Research at Boston College, only about one-third of people have a will. The main reason for this lack of preparedness? Procrastination. But setting up your will is crucial for more than just financial reasons.
A will ensures that your wishes are clearly communicated and that your assets are distributed according to your wishes, especially if your state’s intestacy laws don’t align with your preferences. This makes it a cornerstone of financial planning, as noted by Clifford Cornell, a certified financial planner at Bone Fide Wealth in New York.
Now, you might be thinking, “It’s already such an arduous process.” And you’re not alone. Nearly 80% of people intend to write a will, but many put it off due to the perceived complexity of the task.
However, there are opportunities to make the process easier. For example, some banks offer to help customers write their wills while applying for a mortgage, providing free legal and financial advice along the way. Surprisingly, not everyone takes advantage of this offer, even when incentives like a $500 bonus are thrown into the mix.
But regardless of the perceived difficulty, estate planning is essential for everyone, not just the wealthy. Without proper planning, your loved ones could face challenges in the event of a catastrophic incident. State intestacy laws would determine how your assets are distributed, potentially leaving important decisions in the hands of the court.
To get started on your estate plan, consider naming beneficiaries for retirement accounts, life insurance policies, and other assets. Updating beneficiaries only takes a few minutes and can ensure that these assets pass according to your wishes. And don’t forget to review and update these designations after major life events like marriages, divorces, or births.
When it comes to major assets like a house, it’s important to consider how they are titled to ensure a smooth transfer of ownership. Leaving a house out of your will or titling can lead to complications in how it is divided among heirs.
In conclusion, writing a will and creating an estate plan is an essential step in securing your financial future and ensuring that your loved ones are taken care of. Don’t let procrastination get in the way of protecting your assets and legacy. Stay tuned to Extreme Investor Network for more valuable insights on personal finance topics.