3 Reasons Why You Should Name the Beneficiaries of Your Will
Let’s face it, financial decisions are the one thing you tend to postpone. You have probably gotten that big job that allows you to buy life assurance, and you keep getting caught up in other ‘serious’ matters that require priority postponing your beneficiary paperwork. You might also think that you are still young to be dealing with such serious issues when you have a whole life ahead of you. You could also feel that you still have a family to start and do not want to deal with beneficiary updates this early.
Well, you might be making a point that involves foregoing all the processes involved in creating a will, but beneficiary naming is far more critical than the time you are putting on it. For starters, a beneficiary is a person, people, or an estate that receives your money after your passing. You might wonder why you need to name beneficiaries when you still have a will, and the answer is simple. A beneficiary takes precedence over a choice meaning that if you happen to pass without naming your beneficiary and without an up-to-date will, your money might end up in the wrong hands. To prevent an ugly court case or your loved ones from missing what you intended for them to get, the following are three reasons why you should name the beneficiaries of your will.
It Eliminates Confusion, Ensuring People Get What You Intended
A case with named beneficiaries is a walk in the park for your lawyers and insurance companies. Without beneficiaries having to go through the probate process, your money might not be distributed how you would have liked it. There are times when ex-spouses or children are left out, or the division is not fair. To prevent hostilities or unfair distribution of your money, name your beneficiaries when you have the time for it. You have these comparative life insurance quotes to help you make a better decision. With such, you’ll be providing your family with better coverage after you are gone, and with a will in place, protect them from future family disputes.
It Saves Time And Money
In case of death without a named beneficiary, your case goes through a probate court. Going through probate means that your loved ones get to spend money on the topic, which in most cases is a percentage of cash from two to five percent. This process is often lengthy, with some lasting years, and with so many additional costs. Unlike a will, changing a beneficiary is as easy as logging in to your account and changing your beneficiaries. Overall, naming beneficiaries is fast since the funds can typically be transferred to them as soon as they present a death certificate.
It Is Private
When you pass without naming beneficiaries and your will has to apply, the matter can become sticky. The worst nightmare is that the subject becomes public when the case is in probate. Unless you intend to let the public know how much you left, then beneficiary naming should be your best option. Assigning beneficiaries is also crucial in preventing hostilities between those mentioned in your will. Children, ex-spouses, and other relatives might have bad blood, especially when they realize that they did not receive the same amount of money. For their sake and your peace, name your beneficiaries.
It’s As Easy As 123
Estate planning has for a long time been considered a difficult and rigorous process. It’s for this reason that most people have distanced themselves from creating a will and instead, have come up with ideas that end up hurting their loved ones down the line. But to your surprise, this is a process that will not cost you much, or eat into your valuable time. With the help of an estate attorney, you could have the whole process settled in minutes. All you need are the right documents, the names of the people you want to include in your will, and you are done. To make it easier, below are the simple steps involved when preparing a will. They include:
- Draft your will
- You must meet the minimum age requirement of 18 years, depending on your state laws
- Ensure that your estate documents are in order
- It’s also critical to know the worth of your assets
- Last but not least, determine your beneficiaries
If you have anything worth fighting for, the above reasons should be enough to have you name your beneficiaries. Having a will could help save your loved ones from any future squabbles. Anyone with a long list of property should consider writing a will and appropriately naming their beneficiaries in the will.