This is a collaborative post: As a new parent, perhaps the one thing you may not be thinking of is writing a will. Like most new parents, you are probably so smitten with the wonder of that tiny, amazing bundle of joy that the last thing on your mind is something as gloomy as pondering your passing before your time. Unfortunately, this is something you should be considering because no one knows when their last breath on earth will be. To be sure, you will want to make absolutely certain that your child is cared for in every regard should you pass before they reach adulthood. Here are some tips to get you started writing that will that every new parent should do at their earliest convenience.
1. Don’t Forget to Name a Guardian
Before getting into the financial aspect of your will, the one thing many new parents don’t think to include is a stipulation as to whom you’ve decided to be the guardian for your child. Of course, you will want to discuss this at length with the person or couple you’ve chosen to raise your child in your absence, but once that’s settled, don’t forget to name them in your will. This will make your choice indisputable in the courts. Should any other relative or friend come forward to claim guardianship, your wishes should be honoured.
2. Name an Executor
This is another matter which takes careful thought. Who do you want to see to it that your wishes are carried out as established in the will? An executor is the person who handles distributing assets as you’ve laid out in your will, so it should be someone you trust wholeheartedly. If you’ve decided to go the route of writing online wills, then always check that you will be guided and have ample resources for any questions you may have. Remember that verbiage is of ultimate importance in legal documents and this is why it’s important to find a will writing online team that can answer all your questions.
3. The Benefit of Online Will Writing
This is, perhaps, one of the best tips anyone can give you. Bear in mind that writing your will takes a lot of thought and some things won’t come easily. Would you rather spend hours in a solicitor’s office discussing points to include or would you rather settle down with a nice, hot cup of tea and your handy laptop or PC? Will writing and estate planning online with a company like ELM Legal Services offers you the chance to sit back and ponder the distribution of your assets and people you want to name as executor, guardian and even trustee if you’ve set up trusts for your children. Online legal services teams like the experts at Elm can be consulted to answer any questions you have regarding how to plan your estate. When writing a will, you don’t want to leave anything up for debate and this is why resources like these are necessary.
4. Establishing Trusts
While you will want to set up funds for the financial care of your child, or children, in the event that they are left without parents, you may also wish to consider the benefits of establish a trust. These can take on many forms. Some trusts cannot be touched until the child reaches adulthood, or a specific age you set forth in your will. Other trusts may be ‘borrowed against’ if the trustee determines the money is imperative to the financial wellbeing of the beneficiaries. However, capital gains taxes need to be considered if a person will be withdrawing value from the trust, so the type of trust you establish is of ultimate importance as well. With this said and done, like the executor, a trustee you name should have an ethical character beyond reproach.
5. Leave No Doubt
Another thing to bear in mind is that you must leave no doubt as to your intentions as set forth in your will. How many times have you seen the news where relatives of some rich and famous person step out of the woodwork to dispute a will? Therefore, the language you use in your will should leave no doubt as to your intentions in terms of the distribution of your assets as well as the named persons in your will. Very precise instructions should guarantee that your last will and testament cannot be contested, or it could be held up in probate court for months or years on end.
6. Conditions Which Must Be Met
Some of the clauses in your will may require certain conditions being met. There are parents who have stipulated that their child cannot inherit certain assets unless they finish college, for example. These are stipulations which you have the right to set forth in your will and the executor will be charged with seeing to it that all conditions are met. Again, it’s a big task you’ve set out for this person, so choose your executor carefully. Remember, you have the right to set terms and conditions and legally they should be followed to the letter of the law.
7. Plan for Future Financial Growth
Let’s consider for a moment that trust you’ve set up. Once it’s been drawn against, capital gains are an issue with HM Revenue & Customs. Most often the money or properties are left in the trust so it’s important to plan for future growth. Perhaps you can set a ceiling as to the amount a beneficiary can receive before distributing excess to other people or charities. This is something you may wish to consider if there is a charity near and dear to your heart. Once again, be very specific in terms when writing your will when you are planning for future growth in excess of what you intend for a beneficiary to receive.
8. Remember Those Edits Over Time
At the time of writing your will as a new parent, you may not foresee more children in your future. It is important to remember that you can, and often should, revise your will from time to time. One instance would be other children being born. Another time you may want to revise your will is in the instance mentioned above. When planning for future growth, you may want to revisit your will from time to time to set a redistribution of trusts and things like MMAs (Money Market Accounts) and CDs (Certificates of Deposit) that have gained in value. From renaming beneficiaries, executors, trustees, and guardians to redistribution of assets, know that you can, and should, revise your will as needed.
No Small Endeavour
It doesn’t matter how large or small your estate is, writing a will is no small endeavour. You are setting conditions for the distribution of your assets with heirs and spouses (past and present) in mind. Even a small error or omittance can leave your will up for debate, so do consult with legal services experts who can help you draft and incontestable will. Remember, you don’t have to step foot in a solicitor’s office of that doesn’t appeal to you, but you should avail yourself of assistance from online will writing services if that’s the path you’ve chosen. It can be a long and arduous process, but it is something every new parent should do at first opportunity. With expert advice, you can ensure your child’s future will be financially stable.