William Penn Life, 2015 (50. évfolyam, 1-12. szám)
2015-08-01 / 8. szám
Moneywise with Bob Bisceglia I READ WITH GREAT INTEREST Kathy Megyeri's article in the March 2015 William Penn Life where she recalled 11 lessons learned from the death of her parents. It reminded me of some important lessons learned when my mom passed away in 2012. One lesson Kathy stressed is the importance of putting your affairs in order, putting all of your important papers in a safe place and making sure your beneficiaries are up to date. She also mentioned the importance of having a will. The thought of writing a will makes many people uncomfortable, yet a properly written will is one of the most important factors in estate planning. A will is a formal legal document that will instruct your survivors in the settlement of your estate. Insurance policies and annuities pass by contract to the named beneficiary. But, a properly written will ensures that your other property will be distributed as you wish it to be. Have you postponed the task of writing a will? If you already have a will, has it been updated recently? Does your will provide for your grandchildren should your children die before you? These are all difficult questions but ones that need to be addressed. Taking the time to compose your will helps to ensure that you decide how your estate is divided, not the state. When someone dies without a will (known as dying "intestate"), your state of domicile will decide how your estate is to be divided and by whom. Some people may feel that their estate is too small to need a will, but you should consider writing one anyway no matter the size. The reason is this: if you die without a will, you automatically forfeit your right to direct the dealings of your estate. In my experience I have seen families literally torn apart over $500. Having a will helps avoid such conflict by not only allowing you to stipulate any special bequests (who gets what), but also giving you the opportunity to designate who handles your affairs (the executor), make plans for minor children and grandchildren and provide for any charitable bequests. If you have decided that you'd like part of your estate to pass to personal friends or even a charity, a will is the primary source of fulfilling your wishes. Without a will, the courts would have no way of knowing what your wishes were and will seek out relatives—no matter how distant—for distribution purposes. If you are not married but have a "life partner," a will helps ensure that your partner is properly cared for. In addition, a properly written will provides for a secondary or alternate beneficiary in the event of a common disaster or in the event your primary beneficiaries die before you do. Many people have shifted assets into trusts and use joint ownership as a means to bypass probate (the process that establishes the validity of a will). Even people in these situations should have a will because not all assets will be covered by the trust or ownership clauses. The will, however, has the potential to cover all of your assets, leaving no property unaccounted for and no stone unturned. Like life insurance, a will is another means of providing security to you and your loved ones. Although the topic may be emotionally challenging, the advantages far outweigh any temporary discomfort you may feel. Give some thought to how you'd like your assets to be divided, who is to be named as executor (or executrix) and who (or what organizations) will receive benefits according to your wishes. After gathering your thoughts and deciding on how you'd like to structure your affairs, you can find many good sources for helping you to write your will. As always, consult a legal professional for any advice or guidance on legal matters, and consult your WPA representative to make sure your beneficiaries are up to date and follow your wishes for distribution. Once you're done, as Kathy stated in her article, make sure your plan is communicated to your loved ones and all of your important papers are stored where somebody knows where they are. Then, you and your loved ones will have the peace of mind that comes with proper planning, knowing that your estate will be distributed based upon your wishes. □ 4 0 August 2015 0 William Penn Life Photo © Can Stock Photo Inc./gcpics The importance of having a wil
