Why should I have a Will?
You decide how your estate will be distributed. A will lets you determine how you would like your estate to be handled upon your death. If you die without a will, there is no guarantee that your intended desires will be carried out. Having a will helps minimize any family fights about your estate that may arise, and also determines the “who, what, and when” of your estate.
You decide who will take care of your minor children. Absent a will, the court will take it upon itself to choose among family members or a state-appointed guardian. Having a will allows you to appoint the person you want to raise your children or, better, make sure it is not someone you do not want to raise your children.
Minimize estate taxes. Another reason to have a will is because it allows you to minimize potential taxes so more of your estate goes where you want it.
You decide who will wind up the affairs of your estate. Executors make sure all your affairs are in order, including paying off bills, canceling your credit cards, and notifying the bank and other business establishments. Because executors play the biggest role in the administration of your estate, you’ll want to be sure to appoint someone who is honest, trustworthy, and organized (which may or may not always be a family member).
You can disinherit individuals who would otherwise stand to inherit. Most people do not realize they can disinherit individuals out of their will. Yes, you may wish to disinherit individuals who may otherwise inherit your estate if you die without a will.
Make gifts and donations. The ability to make gifts is a good reason to have a will because it allows your legacy to live on and reflect your personal values and interests.
Avoid greater legal challenges. If you die without a will, part or all of your estate may pass to someone you did not intend.
What is a Power of Attorney?
A power of attorney is a document in which one person appoints another person to act for on their behalf. There are many reasons why you might want to appoint someone else to look after your financial affairs. For example, if you are going to be out of the country for a lengthy period of time, you might want someone to do your banking while you are gone. If you are approaching old age, you may want to give a power of attorney to a person you trust so that he or she can manage your property for you
A general power of attorney is one that gives the attorney the authority to do anything the donor could do him or herself. A specific power of attorney is one that gives the attorney authority to act for a particular purpose (e.g. to buy or sell a particular piece of property).
Power of Attorney for Property vs Power of Attorney for Personal Care. A General Power of Attorney for Property gives your attorney the power to make decisions about your finances, home, and possessions. A Power of Attorney for Personal Care deals only with personal care decisions.
You can name the same person as your attorney for both property and personal care, or you can name different people.
Should I update my will?
Yes! Because you can change your mind if your life circumstances change. A good reason for having a will is that you can change it at any time while you’re still alive, especially when major life changes, such as births, deaths, and divorce occur. Life can create situations where changing your will is necessary.