Why having a Will isn’t always enough…
A Will is often considered the cornerstone of estate planning; therefore, many of us know the importance of keeping an updated one. Some will know what a Lasting Power of Attorney (LPA) is, and only a few will know how vital help in their future estate planning a Trust can be. The truth is all three can work together, like three sails of a ship.
Your rear sail is your will; it determines where everything goes after you’re gone, but it only takes effect once you have passed away. The LPA is the steering sail; it allows someone you trust to steer your personal, financial, and healthcare decisions for you while you’re still alive but vulnerable because of illness, injury, or reduced capacity. Without it, your ship can become stuck for months while the courts and institutions decide who may act on your behalf. Then the trust is your protective sail, safeguarding your most precious cargo — such as your savings, investments, and home — to help avoid probate delays, costly family disputes, and unexpected costs. We’ll explain what these terms mean in more detail in future articles. The key point is that relying on your will alone can create estate complications and steer your affairs off course.
To keep things simple, here are five reasons why your will may not be sufficient on its own:
Wills Must Go Though Probate – Probate involves a legal process where courts assess the validity of the will and oversee the distribution of assets. This process can be very expensive - costing anywhere from 3-7% of your estates total value. It can also be very time-consuming with the process lasting months or even years.
Wills are Public Records - This means that once submitted for probate and your will becomes a public document, anyone can view who inherited what, and why. For many people such a violation of privacy can feel uncomfortable!
Wills Can be Contested - Your final wishes may not be up-held if a family member contests a portion of your will. This could lead to awkward conflicts and further legal fees at an already difficult time for the whole family.
Wills Don't Cover All Assets - Any life insurance policies (not in trust), jointly owned properties, pensions, or online assets like cryptocurrency and capital shares are often not covered in traditional wills. This can lead to confusion and the misdirection of assets.
Wills Cannot Provide On-going Management of Assets - If your heirs are minors, have special needs, or simply aren’t financially responsible, a will won't provide a way to manage the property long-term. Having a trust means that you can set payouts at key stages or ‘milestones’ throughout a beneficiary's life, ensuring they don’t receive everything at once.
As you can see, a Will is an essential pillar of estate planning but should not be the whole structure. It speaks only after death but is silent during incapacity. It sets out wishes but cannot always enforce them properly. This is why at iTrust121, we build you a full vessel that’s ready for anything regarding your life and legacy plan. We value holistic legacy planning, so whether life brings fair winds or rough seas, your ship sails smoothly with peace of mind, no matter what life brings.
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