How to Make a financial plan for your children & family By writing will. Writing a Will as a Financial Planning Tool for My Children
Writing a Will as a Financial Planning Tool for My Children
Part of the wealth I hold I obtained through a legal hassle with family members. The phrase blood is thicker than water doesn’t apply much to me. I have seen betrayal from blood relatives. I have lost what was legally mine in the hands of a blood sister. The tales are quite bitter, but the wise say it takes time to heal and forget the pain. Today I have built my wealth. I don’t remember much of my inheritance, but I have considerable wealth.
I am not planning to make the same mistake as my father. No, it wasn’t a mistake; it was misinformation, lack of knowledge. My father was loving, and he wanted the best of each child. He had created wealth and invested in various sectors such as real estate. I won’t revive much of dad’s memories, but I am making better choices for my children.
A will is termed death wise by many or legal documents used to allocate property to children, relatives, or organizations. However, a will is a legal document that clarifies property succession. For me, a will is the best investment or financial planning tool for my children. I want to leave the best and ensure peace among my children. My age is advancing, but that not what inspired me to write a will. In a real sense writing a will is not about predicting your death. Things change your kids can die before; you can lose the property to natural calamity or anything.
Writing a Will
Writing a will is giving a proper guideline on your property. My father made a will long before he died. However, he wrote the will and never updated it (living will). All he wished to allocate was there, but he had earned more and was never included in the will. Over the years, my attorney advises and reminds me to update my will. The beneficiaries (heirs) and property details to ensure no fight will erupt once I am gone. The majority of wealth is inherited by strangers or extended families due to simple mistakes of not updating your will. A will is only valid for five to six years or based on your country’s policies. This helps you update on anything new or delete anything that is no longer in your possession.
Mistakes AM Not Willing to Repeat
Not including personal effects and petty valuables
My father embraced different cultures and had portraits from various parts of the world. They were worth millions of dollars. Other valuables were never mentioned in the will. Through some legal battles, the court divided the items, and we had equal shares. Little did we know that valuables are considered financial assets by the law? This means they attract a particular tax value which is payable every financial year.
This a common mistake we make when writing a will. Ensure to write and keep records of your possession; no matter how small the item looks, it will save your heirs a lot. The majority of people later dispose of the valuables through auctions at low prices than their actual price.
Offering the inheritance without proper guidelines
We didn’t inherit our late parent’s property at a young age but during our court sessions. I met with different families who acquire properties and tender ages. In one case, a teenager inherited $8 40 000 from his step-father. Besides the families many complaining about the amount, the sum was a waste to the young man. He could handle the wealth by the time we were ending our court visit. The teenager had already passed away due to unfair dealings and excessive use of drugs. I don’t wish such for my children. There are several ways to leave wealth to your children. You can select a trust which will help your child manage the wealth until a considerable age.
Not updating the will
Our father’s biggest mistake was not updating his will. He wrote his first will ten years before his passing with the best intentions in mind. However, he acquired more property and lost others over the ten years. Before his death is direct us to where his will was hidden, we never bothered to check the will, but we were sure we are secure. He passed on, and surprisingly the will was not valid. Family members took advantage of the situation, and we lost so much to strangers claiming relation without late father.
How I made and updated my will
My children know I have a will already prepared. I have included my wife and three children, each getting an equal share of the property. The will is like an investment plan for them; they are secured both financially and property-wise.
- We sort the best estate planning attorney.
Today technology provides unique software which helps families create and update wills. However, for my family, we opted for a family attorney. He helps in allocating and legal advice. It also offers the seriousness of the matter, especially to my children. I let my children ask questions and know every detail about will writing process. Though the funny one was, “dad, are you leaving like grandpa.” Today they understand why we write a will.
- I selected the beneficiaries or heirs
Besides my family, I have included an organization helping destitute families. I love donating, and I felt this would be the best gift to the organization. Writing a will doesn’t mean you’re being confined to your immediate family.
- I have selected my executor
Due to past experiences, I have selected a friend as my executor and my attorney if my friend is not around.
- My children guardians
My wife did the guardian selection process. She knows who’s best for our kids, and I felt I should honor her decision. We have selected three relatives and included an organization; if the relatives don’t want to adopt our children, it’s always best to be on the safe side.
- I have clearly stated my will and updated
It’s best to clarify to avoid fights among the beneficiaries. My attorney is very keen on updating the will.
For me will writing is a financial investment for my family. I feel I have gifted my children the best financial gift.