In order to grasp the importance of a will , one should probably know what it is first. A will is a legal document that lays out your final wishes. It states how your assets will be distributed after death, who will have custody of your children if you have any, as well as any estates that you may have. If you die without a will, you die ‘Intestate’, meaning that your assets will be distributed according to your state laws.
With a will, there are two parties involved. That is, the ‘executor’ and the ‘beneficiary’. The executor is the person to whom you trust the task of setting up your will. This person is responsible for making sure your taxes are paid and your will is set up the way you would like. In your will you should make it clear the percentage of your estate that should be paid to the executor. The beneficiary, is the person or persons who will be receiving some of your assets after death.
It is always a good idea to update your will annually, as to avoid any family disputes, or chaos in the event of your death. Even if you are young, it is an important thing to do, you wouldn’t want to end up dying intestate.
Another important document is a Power of Attorney. A Power of Attorney is basically a notarized piece of paper giving someone else permission to act legally in your name. There are two different types of Powers of Attorney; those for personal care, and those for financial matters. A Power of Attorney set up for personal care, would help in the event that you happened to fall into a coma. Say you were put on life support, would you want your doctors to make the decision about whether you live or die? I know that I wouldn’t. So… you set up a Power of Attorney so that someone you trust can make that decision for you.
If for any reason at all you believe that you will not be able to make financial decisions for yourself for any amount of time at all, it is a wise choice to get a Power of Attorney for this as well. It can be as specific or as...