Do I need to….? Can I state that…? What happens if I…..? As an estate planner, one thing you can never be short of are clients in need of answers to their questions. Most of the questions asked are pretty much important, however they are usually very similar, this prompted us to categorize the majority of the questions we get asked daily into 3 questions so we can provide you with answers if you currently have similar questions too.
Here are 4 common estate planning questions with answers to them:
a). What is the difference between a Will and a Trust?
This is arguably the most asked question in estate planning and I am sure if you google it, you will see a bunch of results with textbook definitions come up, so let’s use Alabi as an example instead:
When Alabi writes a Will, his assets are distributed amongst his beneficiaries according to his wishes as stated in his Will right after his death. However, when Alabi sets up a Trust, he transfers the assets stated in his trusted deed to a trustee to manage on behalf of his beneficiaries (e.g his children, Bolu and Tolu), and this comes into effect immediately it has been signed. One major difference to note is Alabi’s Will gets into effect once he dies while his trust on the other hand goes into effect once he signs the Trust deed.
b). When should I update my Will?
This is a very important question, and for anyone thinking if this is necessary at all, let me ask you this: When you get a new certification or degree, do you include it to reflect in your profile or CV? I guessed as much. That same principle should be applied when writing a Will also, it is important to always revise your Will every time you have life changing experiences like: acquisition of a new asset, change of name, birth or death of a beneficiary, change in status of a guardian, trustee, or executor, when you get married or divorced and many more. Whenever you are unsure about revising your Will, seek the help of a professional. Always feel free to contact leadway Capital and Trusts for free consultation when you need help or advice.
c) How much should I have before writing a Will?
I am sure you must have heard someone say “Wills are for Rich people, what do I have that I am writing a Will”, the assumption that a Will is only for the rich is totally false because you don’t need to have all the money or landed properties in the world before you write a Will. A lot of people have assets but don’t realize they do, for example, do you know your retirement savings account and bank accounts are assets? So why haven’t you protected them yet? With Will Packages like Simple Will, you can easily protect your bank accounts and Retirement Savings Account (RSA) and with Simple Will Plus, you can protect your Landed properties, cars, bank accounts, retirement savings account and other precious items you cherish. Visit iWill by Leadway Capital and Trusts to get started today. Don’t forget, no asset is too small or big to be included in your Will.
d) Can my Family contest my Will?
Yes they can, all Wills can be contested, but you can prevent this from happening. How? One of the most important things you can do to prevent this from happening is to ensure your Will is properly executed by choosing a very experienced executor. Also, in your Will, you can explain to your beneficiaries the rationale behind why your assets were distributed the way you did so they can better understand the reason why someone got what s(he) got and why another person didn’t get as much, but if you have a peaceful family, then this might not be necessary.
The most important thing to note when planning your estate is to avoid assumptions, most times, your assumptions might be wrong and you might end up making the wrong decision about your estate. Whenever you have a question, always seek the counsel of a professional. Need any help? Contact Leadway Capital and Trusts today for a free consultation.