Making Your Last Will and Testament

While many people thinks that they do not need to draw up a last will and testament, I think it would be best that we should be responsible enough to take care of unfinished business or rather, leave instructions on how our unfinished business should be managed.

Regardless of whether you have assets to give away to your family or none, you may still need to have a will for issues like how you want to be buried when you die or other wishes that you want your family to be informed of. A will lets you give clear and straight to the point instructions for the ones you left behind. Like:

1. In a will, you can choose the person whom you want to represent you in your unfinished affairs.

2. You can choose and appoint a guardian for your children who are minors -It can be a friend or a relative.

3. You can decide on how your assets will be divided for your children's benefits. You can also give out clear instructions on how you want your assets to be managed.

4. A will can help you make arrangements in order for your properties and estates to be preserved or even enhanced.

5. And most importantly, by having a will, you can be leave the physical earth assured that all you unfinished affairs are being taken care of the way you imagined it.

In the absence of a will, the probate court will be the one who will decide on how your estate shall be managed and the decision may not be possibly on the side of your beneficiaries. That is why, to be more assured, just make a last will.

Making a will can be very easy, just follow these steps:

First, state your complete legal name and address and the actual date that you are making the will. You might also add your birth date and social security number to make sure that nobody mistakes you for someone else.

After that, state that your mental capacity is of well state and that you are of legal age. You must specifically point out that you are of sound mind and can make rational decisions. Otherwise, your will can be easily challenged in the court.

Do not forget to mention that you are revoking all other wills created before the date you stated in the beginning. Your next steps would be to appoint the executor of the will. You should also include the responsibilities and limits of the power of your executor. If necessary, you might also want to include your second choice for being the executor in case your first choice has declined or is unable to do the responsibilities of being an executor.

After that, you can basically decide what to write next. You may put the clear instructions that you wish like how your assets can be divided among your beneficiaries and other instructions that you wish to be fulfilled. After that, do not forget to include a residual clause. The residual clause will contain the name of another beneficiary that will have what is left of the assets you have if there are any.

Sign the papers and keep it in the hands of someone you trust or just simply store your last will in a safe place. You may also want to give it to your lawyer. And you have a last will already.

Should You Make a Will?

The writing of a will or testament is something people don't usually dwell on. Obviously they are usually associated with death, and when you are considering making your own will, it will more then likely bring your own eventual demise to mind. But none of us will live forever. So unless you have already made a written legacy, it is something you should really give serious consideration to.

So why should you make a will?

Most people want to leave their families and loved ones something when they die. It could be enough to give them a more comfortable future, or just something to help them remember you by. A will is a legal document which states exactly who gets what following your death. You may well think that you do not own enough to leave your family, so making a bequest is just not worth the bother. Your estate, what you leave following your death, is made up of your money, and any property and possessions you owned. You may not think you are worth a lot while living, but after you die you could well be worth a tidy sum through insurances etc. If you have made a will your estate will be divided between those people you stipulated in it.

So what happens if you die intestate? In that case one of the main beneficiaries from your estate will more than likely be the tax authorities, meaning that family and loved ones could well lose out on a large proportion of what you would have liked to have left them. In such cases the law is quite specific about who will gain a share, once the tax authorities have taken their cut. While the people who benefit will more than likely be family and relatives, it could be that you never wanted some of them to benefit from your estate following your death.

By making a written testament, what you leave following your death will be divided between only those you wanted to have a share. For that reason alone, you should most definitely make a will.

The Effect of Public Sector Cuts on Funeral Costs

The news has been full of threats and forecasts regarding the forthcoming public sector cuts - a reduction in services and mass redundancies are now, unfortunately, expected.

What may come as some surprise, however, is the effect that this may have on funeral prices. Already costing in the region of £2000 - £3000, these prices are likely to soar by several hundred pounds.

Although not yet decided or at least publicised by many councils, it was reported in a Scottish newspaper that Glasgow City Council is raising the prices of both burials and cremations - burials by £540 and cremations by £348, increasing the revenue stream by approximately another £400,000 each year.

Whilst this is of course appalling news, it means that once renewed prices have been set across England (if a local authority does indeed decide to increase its costs), those who have prepared a Will with money set aside for their funeral, will probably need to revise it, to take into account this increased expense.

For those who don't already have a Will prepared, you may be asking your next of kin to pay out several thousands of pounds to ensure you receive a dignified funeral, something which could have a severe financial impact on those individuals. If you at least state in your Will that you would like to put aside a maximum sum of money from your Estate, your relatives will at least be sure of recompense after your Estate has been settled.

For many people, it is of course uncomfortable to discuss death in the first place, so to talk about where the money is going to come from in order for your wishes for your funeral to be fulfilled, is understandably not at the top of people's favourite list of subjects. However, it is a fact of life that the event will be forthcoming, and, with these price rises staring us in the face, it's time to address the issue and ensure that we won't be causing our loved ones any more distress after we're gone.

Life Insurance and Your Estate Plan

Most people understand the need for life insurance, but not everyone knows that this is also a very important element to a solid estate plan. It will come into play with your estate plan in a couple of different ways.

When you purchase life insurance there are some things that you will want to consider.

Your Need for Life Insurance - Obviously one of the first things that you will want to consider when you purchase your insurance policy is what your needs are. One of the most common reasons that people purchase insurance is that it helps their family financially if they should die. The ways in which this type of insurance can help, include replacing lost income, as well as providing money quickly to help pay for your final expenses, such as medical bills and the cost of a funeral. Keep in mind that someone's final arrangements can be very expensive.

The Smart Way to Use Life Insurance - When you purchase this type of insurance you can setup an estate plan that will ensure that your loved ones receive this money without the major tax liabilities that come with inheritance, such as estate tax and income tax. The best way to do this is to setup an estate plan that includes an Irrevocable Trust; with this type of plan the Life Insurance Trust buys the Insurance, and when you die it passes to your beneficiaries. It is sometimes better than an IRA or 401K, due to the fact that these types of assets will be subject to taxes before passing to your beneficiaries.

Reviewing Your Life Insurance Policy - When you purchase a new insurance policy you will want to review it to ensure that you are getting the amount of coverage you need, for the lowest premium available. You will also want to review existing policies on a regular basis to make sure that you are covered, and that you cannot find more coverage for the same price. If you are not familiar with the policies and other financial matters, it is best to hire a financial planner to help you with your insurance purchase, as well as regular reviews of your benefits.

A good estate plan should include insurance policies. With life insurance you can help to relieve the immediate financial burden that your family will deal with when you die, plus you can rest knowing that your family will be taken care of, even if you are not around to do it.