Tax Benefits of Creating a Simple Will
After a person is married, even before they have kids, they should get a last will and testament created. This simple piece of paper will help alleviate a lot of problems that come along down the road (it’s very easy to forget about your will and accidents could happen at any time). As your estate grows, further problems could arise in your tax situation. A simple will can help to alleviate those problems.
What is in a Simple Will?
The biggest thing that goes into your will is who will own what assets after you die. For instance, will your house be sold and the proceeds donated to charity? Or will everything be left to your children? You need to have this clearly planned out, or things may not go as you would want them. Here are the top 5 reasons that you absolutely need a will.
Estate Distribution – As mentioned above, distribution of assets and estate are something that is near to your heart. You spent your life building your estate; you should get to say what happens to it after you’re gone.
Childcare – If you have young children (under age 18) you need to have a will so that they are taken care of if both you, and your spouse, pass away. Without a will the court will get to choose who takes the kids. While they generally choose a close relative, they may be placed with a state-appointed guardian.
Minimize Estate Taxes – Estate taxes are one of the banes of growing your estate. Often called “The Death Tax” these amounts can add up quickly. With a simple will (or a trust if your estate gets large enough) you can divide up your assets in a way that minimizes, or eliminates, estate taxes.
Choose Your Executor – You may have a friend or family member that you trust the most with your estate. Without legally naming your executor, you are leaving things up to the court (and they will take a fee for their time).
Easy to Change – A will is not set in stone. If a grandchild is born, or a sibling is divorced, you can change up your will whenever you please. Your final wishes should be honored, and as long as you are alive you can change them to however you want.
Creating your Last Will and Testament
There are a number of ways to create your simple will. You could write it all up yourself, and get it signed in front of a notary. This is a cheap and easy way to do it, but there may be things that are missed. Instead, many people choose to hire an attorney to help them. But at $200 per hour, a will can easily cost thousands of dollars to get drafted, and hundreds every time a revision is made.
Instead of wasting your time (and missing some key aspects) or wasting your money, you should look into Legal Shield. You can get all of your legal work done for one low monthly price. Even if you sign up and only use it to create your simple will (and hang on to it for a couple of years “just in case”) you will still pay less than if you approached a lawyer directly.