All people require a will. The legal document outlines your instructions for the distribution of your assets upon death and, if you have young children at home, it also specifies who you want to be their guardian.
A will, a health care directive, a power of attorney, the designation of beneficiaries on retirement savings accounts, and other end-of-life papers are all included in an estate plan, which is a grandiose word.
When putting out a will, persons who are close to retirement can also reflect on their ideals and leave a legacy.
But far too many people fail to recognize the need for a will and other estate planning papers.
The Center for Retirement Research at Boston College found that from 72% in 2002 to 63% in 2018, fewer adults aged 70 and above have a will.
What Occurs if a Person Passes Away Without a Will?
State law governs how assets are distributed after death.
The laws of Minnesota are typical. Your spouse and/or your children come first, followed by your parents, siblings, nieces, nephews, grandparents, aunts, uncles, and cousins.
This priority list is generally acceptable to most individuals. However, there are still valid justifications for drafting a will that details your goals.
A will increases the likelihood that at least something will be left for heirs. That is one conclusion drawn from the academic article Wills, Wealth, and Race by the Boston College Center for Retirement Research.
After adjusting for demographic and socioeconomic factors, the data reveals that Black and Hispanic people had very high probabilities of passing away without a will. The researchers also discover that these people are less likely to leave meaningfully large bequests.
But, they say, there is solid evidence that making a will boosts the likelihood of achieving bequest goals by either protecting assets after death or by altering behavior while still alive, such as limiting consumption to ensure bequest goals are achieved.
If you don’t have a will, make one as soon as is practicable.
Source: Star Tribune