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R&R Insurance Blog

Why You Need A Will

Posted by Resource Center

If you think wills are only for the rich, you're wrong. A will is an essential part of any estate plan. It is the primary document for transferring your wealth upon your death. If you die intestate (without a will), state law controls the disposition of your property. Without a will, settling most estates is more troublesome - and more costly.

We can't cover all the critical elements of an effective will but there are three major provisions your will should include:

Guardian for your children. The will should name a guardian for your minor children in case both you and your spouse die. Selecting a guardian to care for your children deserves a lot of thought. Name someone whose ideas on raising children are similar to your. Also, be sure the person you select is willing to accept the responsibility.

Personal Property Memorandum. The will should reference your personal property memorandum. Wisconsin statutes permit you to detail the distributuion of personal property to your beneficiaries in accordance with intentions described in your personal property memorandum. The memorandum enables you to change the disposition of items of personal property without revising your will.

Creation of trusts. All a will can do is direct the disposition of your estate. To accomplish longer term goals, such as funding a child's education or providing for an elderly parent, you must include instructions for the creation of trusts. Throughout this article, we will show how trusts can be used to achieve various objectives.

One importand aspect to consider in any trust, however, is selecting your trustee. A good trustee shares many of the characteristics we discuss in the next section Keys To Selecting A Personal Representative.

Naming a Personal Representative. You personal representative has several responsibilities, including:

  • Marshalling the assets and distributing the estate assets to your beneficiaries.
  • Making certain tax decisions.
  • Paying any debts or expenses of your estate.
  • Ensuring that all life insurance and retirement plan benefits are received.
  • Filing the necessary tax returns and paying the appropriate federal and state taxes.

Topics: Business Insurance