When crafting your will, one essential component to consider is the importance of naming your beneficiaries specifically. It may seem like an obvious part of the will-creation process, but many people do not have an understanding of the potential consequences of leaving vague or incomplete instructions as to who specifically will be your beneficiaries, and in what capacity.
if you’re reading this blog, then there is an excellent chance that you are currently working on crafting your will or are considering modifications to an existing will. This is good news, because that means you are unlikely to die without a will, a state referred to as “intestacy.”
Intestacy implies that the state now has the responsibility of determining who gets which portions of your estate though a process called probate. Probate can be a lengthy and costly process that will likely diminish your assets before your loved ones can receive any of them. To avoid this unseemly process, consulting an experienced estate planning attorney can help ensure that your will is written to specify your exact wishes.
Other advantages of specifying your beneficiaries and the nature of their benefits is that you can ensure that your assets are treated in a manner that you desire. There are many financial products that allow for structured payment plans instead of gifting someone with questionable resource-handling skills with a large lump-sum of money. You also retain the ability to designate specific assets to specific individuals whom you believe will benefit from them the most.
Crafting a will is one of the greatest privileges and responsibilities a person of any level of means can undertake. It is always better to choose for yourself who will benefit from your estate when you pass instead of allowing your state to drag out the process.
Source: investopedia.com, “Why Your Will Should Name Designated Beneficiaries,” George D. Lambert, accessed July 26, 2016