The Many Reasons Why You Need a Will (And No, It’s Not Just for the Grim Reaper)

Let’s be honest: making a will is the last thing most people want to think about. It’s a bit like cleaning your oven; nobody enjoys it, but someone has to do it eventually. And yes, I know what you’re thinking: “Isn’t that tempting fate? Shouldn’t I just keep putting it off?”

Here’s the thing: procrastination, fear of tempting the Grim Reaper, and uncertainty about who should inherit your possessions are just a few of the reasons people avoid making a will. But here’s a surprise: avoiding it is actually complicating things for your family after you’re gone.

If you’re one of those people who think, “Oh, it’ll all go to my family automatically!” well, it might not. And that’s a problem.

Let’s take a look at the many excellent reasons you should be thinking about that will now rather than later:

1. To Name Guardians for Your Kids

If you don’t specify who should look after your kids if something happens to you, guess who decides? Yep, the family courts! And let me tell you, they don’t have the greatest track record when it comes to picking guardians. You don’t want them choosing the cousin who thinks “tutoring” is just yelling at kids to be quiet, do you?

2. To Provide for Financial Dependents, Including Stepchildren

Stepchildren may not automatically inherit anything from you. So, if your stepson has been living in your house for years, and you want him to inherit that shiny new car of yours, you’d better put it in writing. If not, he might just end up with a collection of your dad’s dusty old tools. Fun, right?

3. To Protect Your Partner

Unmarried partners? They don’t automatically inherit anything either. Imagine your partner not getting their hands on the family home just because you didn’t sign a piece of paper. Awkward. Protect your partner and make sure they’re not left out in the cold.

4. To Avoid Family Drama

When you die without a will (also known as being “intestate” – that sounds so official), your family might end up fighting over your stuff. And let’s face it, family fights can be ugly. Think about it: Who’s going to get the prized collection of “World’s Best Parent” mugs? You need to make it clear now to avoid a Thanksgiving disaster later.

5. Inheritance Tax Planning

Writing a will isn’t just about who gets what, it’s also a perfect chance to think about inheritance tax. Because, as we all know, the taxman loves to get in on the action after you’ve worked your whole life to pay tax on your income. A Will can help minimise that.

6. Because Your Pets Deserve Better Than Just a Hand-Me-Down

Your pets might not care about the money, but they do care about food, healthcare, and love. Make sure you have a plan for them so they don’t end up in the doghouse (literally).

7. To Protect Your Digital Assets

What about your digital world? Do you want your favourite playlists and photos to just vanish after you’re gone? What will happen to your email inbox full of junk? A will can specify how to manage your online assets, from photos to social media accounts.

Some Additional “Fun” Questions About Your Beneficiaries:

Are they responsible enough to inherit? You might want to think twice if your son-in-law just bought a yacht he can’t afford.
Will their inheritance be eaten up in divorce or bankruptcy? Imagine your ex son-in-law inheriting your priceless antique chair. Nope, not on your watch!
Who’s really going to benefit from your assets? Your kids? Your stepkids? Your partner’s new partner who you’ve never met but somehow got on the will?

Don’t Forget About the Death-in-Service and Pension Benefits!

People often ignore the fact that death-in-service benefits and pension death benefits can be pretty flexible with the right planning. But if you don’t nominate beneficiaries, you might miss out on major benefits. Talk about leaving money on the table!

Have You Got All This Covered?
It might seem like a lot to think about, but it’s worth it to protect your loved ones and your assets. So, go ahead, make that Will, and make sure it’s the gift that keeps on giving while you’re still around to enjoy the peace of mind!

Want to know where you stand? Score your financial planning at Financial Planning Scorecard and start making sure you’ve got everything in place!