Creating a last will and testament is important, no matter what your economic status, occupation or age. However, it is especially important for entrepreneurs because they are the people most likely to have a large enough estate that not creating a will would result in serious conflicts among the potential heirs that would be difficult to resolve. Having a last will and testament basically gives you the assurance that your wishes will be fulfilled concerning how your property is distributed when you have passed away.
In the absence of a will, you are considered intestate at your death, which means the law becomes responsible for how your estate is distributed. The results of such a state-led distribution might not be something of which you would approve.
There are certain things you should think of when writing a will, little factors that make a difference and give you a better understanding of how it all works. Here are three of them.
1. Your Property
Your will covers both your personal and real property. You should, therefore, ensure you have an exhaustive list of everything you own as you figure out how it will be distributed. It might help to understand the distinction between real property and personal property. Real property includes such things as land, houses and immovable property that is attached to the Earth. Personal property includes such things as family heirlooms, jewelry, stocks and bank accounts.
Do not forget that you cannot bequeath anything that you do not own. Therefore, any joint property cannot be passed on in full, but only the portion that you own.
2. Your Beneficiaries
It is important to have an intimate understanding of what a beneficiary is. Your beneficiaries are basically the people who inherit your personal property and real property according to the terms you set out in your will. These beneficiaries can be pretty much anyone that you wish. Usually, they are the people closest to you, such as your spouse, children and close family and friends. However, you can include other beneficiaries in your will as you see fit. Remember that you should have a plan in your will for what happens when you and your key beneficiaries happen to die at the same time. A common case of this is when a husband and wife die at the same time with the wife being the greatest beneficiary of the husband’s will.
You should be able to clearly express your wishes in your will to ensure you take into consideration all contingencies and unlikely events.
3. Your Executor
This is your personal representative, who is charged with the responsibility of handling and discharging your estate after your passing. It should be someone you have great trust in and who is both organized and responsible. The process of administering an estate can be very tedious and involves a lot of paperwork.
You should talk to your executor in advance so that you make sure they accept the role of executor. You should inform them about the whereabouts of all the important documents, including passwords, insurance policies and last will and testament.
