Sometimes people delay or just refuse any estate planning because they fear it is too cumbersome to deal with. However, planning the inheritance of your estate helps ensure that people you care about will end up with your assets. In addition, some estate planning methods such as a simple will are not complex to carry out.
In some situations, a person does not have to do more than make out a simple will to properly pass a legacy to family members, friends or other intended heirs.
What is a simple will?
A simple will outlines how you want your assets distributed after you pass away. It names beneficiaries who will receive your money, property and belongings. It also designates an executor responsible for ensuring your final wishes are carried out properly.
Simple wills do not include provisions for naming guardians for children, creating trusts or other advanced estate planning measures. In contrast, regular wills accommodate more complex scenarios involving substantial assets, businesses, dependent family members, plus specific objectives you want to realize.
When does a simple will make sense?
You may want to consider a simple will if you are single with no children or other dependents. You probably wish to leave your holdings to a partner, relatives or friends after your death.
Simple wills also help people who lack significant valuable assets beyond cash, personal items and a home. You might also not require intricate instructions for dispersing your estate.
When should you use a regular will instead?
While simple wills suit basic needs, pursuing a more advanced will could be necessary if you have substantial wealth, business interests or real estate holdings. Your financial affairs may be too complicated for a simple will to address.
Another reason to use a regular will is to make arrangements for minor children and other dependents. You might want to create a testamentary trust for family members. In general, you may desire more control over when and how your assets pass to your heirs.
Do not underestimate the importance of documenting your final wishes, even if your situation seems uncomplicated. Explore whether a simple or regular will best aligns with your objectives for your legacy.