Financial planning is an excellent tool for managing your wealth and mapping your future. It is also a tool that you can use to care for your entire family. By incorporating smart financial planning into your will, you can ensure that the wealth you have accumulated goes to your family members.
If you are wondering how you can use your will to keep your wealth within your family, we have compiled a list of simple suggestions that you can follow.
Protect your family in probate court
In your will, you can explicitly state how you want your finances to be handled. If you should pass away without a legally sound will, your estate will probably be divided in probate court. While the court does typically pass a deceased person’s estate to his or her immediate family–generally the spouse or children–this is not guaranteed. Your will can protect your family’s inheritance from the vicissitudes of probate court.
Name family members as beneficiaries
To guarantee that your estate goes to the family members you wish, you can designate specific family members as beneficiaries. Perhaps you would like your entire estate to go to your spouse, or maybe you want to divide it between your children. You can also provide money for younger generations of family members, such as grandchildren or great-grandchildren, to ensure your family’s continued financial success.
Set up a trust
Trusts are another option to include in your will. You can set up a trust and appoint a trustee to care for its assets. This is one way to distribute money to family members who are still minors. It is also an option if you think that a particular beneficiary may potentially squander their inheritance. By setting up a trust, you can also impose certain restrictions on how the money can be used.
Life is unpredictable, and having a will is a way to make sure that your wealth stays in your family. Don’t procrastinate making your will for when you become elderly. The best way to provide for your family is to start now.