By Novi Wealth Partners
Most people understand the importance of having a will, but unfortunately, many don’t take the time to write one. If creating a will for yourself keeps getting pushed down the to-do list, we’re here to tell you that this crucial document is worth the effort. After all, providing a clear map for carrying out your wishes is one way of showing love and care for your loved ones.
Let’s go through 3 reasons why it’s so important to make your plan official.
1. To Have A Say In What’s Important To You
Depending on the season of life you are in and your financial situation, deciding who gets what and who is given certain responsibilities could require a lot of thought. However, if you don’t make a will, the government will choose what to do with what you leave behind, and how this happens varies from state to state. Needless to say, you want to make these decisions, not them! Let’s separate this into categories so it’s easier to process.
Custody Of Children
Make sure you have talked with the people you want to be the caregivers of your children and have that written down so it can be legally enforced. If you are leaving money to anyone who is underage, you need to also determine who is going to handle the money you leave to them until they can make those decisions themselves.
Who Inherits Which Assets
First, think of all your assets. This could include real estate, money in retirement accounts, stocks, vehicles, jewelry, higher-ticket items in your house, or family heirlooms. Whatever you have, be detailed about how you want these assets divided.
Charitable Donations
If you want to make sure some of your wealth is left to causes you care about, that needs to be outlined in your will. Making arrangements now for your philanthropic initiatives can oftentimes provide those charities with even more resources and save you money on taxes at the same time. This leads us to another reason why it’s important to create a will sooner rather than later!
2. To Protect Your Wealth From Taxes
You’ve worked too hard to let your wealth be eaten away by taxes. By planning now, you can ensure you take advantage of as many tax-efficient strategies for your estate as possible.
Here are a couple of options for you to discuss with a trusted financial planner that could provide more savings or tax benefits:
Determine the best option for your situation: a living trust or a will? Depending on the size of your estate and assets, there could be significant tax advantages on the federal and state level for creating a living trust instead of a will.
Set up a donor-advised fund for charities you want to support. Creating and funding a donor-advised fund gives you a tax deduction immediately and allows that money to grow tax-free for the charity of your choice. (1) You can choose to either have this fund continue after you die or to have the funds distributed upon your passing.
3. To Prevent Headaches For Your Loved Ones
Maybe you have already experienced this yourself, but when someone passes away, the last thing you want to deal with is ambiguity, probate, and having to make decisions that person should have made themselves.
You have done the hard work of providing for your family and leaving them in a place of financial stability. Now it’s time to bless them with not only money, assets, or items, but also a smooth transition in the midst of grief.
Do You Need Help Creating A Will?
If you don’t have a will, now is the time to verify everyone is on the same page and make it official. Those close to you will be thankful you made it a priority.
And remember that you don’t have to tackle this task alone. Allow us at Novi Wealth Partners to help! We are a comprehensive financial planning practice that provides estate planning services, coordinating with you, your family, and other professionals to make sure your will is designed well, communicated well, and all your legal and financial needs align. Call (609) 921-7002 or email info@noviwealth.com to get started today!
About Novi Wealth Partners
Novi Wealth Partners is an independent, fee-only comprehensive financial planning firm dedicated to empowering clients to discover their definition of true wealth while providing the confidence to achieve it. With 20+ years of experience, we have found that most people don’t care about money, but instead, they care about what money can do for them and their loved ones. As a result, we focus on guiding our clients to find their unique vision for their life and developing a plan to help them live out their values. Our goal is to truly understand our clients on a personal level and help them navigate life’s many changes.
We are located in Princeton, New Jersey and we service clients both locally and nationally. There are four CERTIFIED FINANCIAL PLANNER® practitioners in the firm, all of whom are members of the prestigious National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA). We prioritize a team-based approach, which allows us to deliver comprehensive financial planning, investment management, tax planning advice, retirement planning, estate planning advice, risk management advice, and concierge level wealth management. We are committed to providing each of our clients a level of service as unique as they are and we are proud, as Fee-Only™ financial advisors, to offer unbiased financial expertise. To learn more about Novi Wealth Partners or to get started on your financial journey, visit our website or connect with us on LinkedIn.
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