Why an Informal Will Might Not Be Enough
Many people believe that creating an informal will is an easy and cost-effective way to ensure that their assets are distributed according to their wishes after their death. However, an informal will, also known as a holographic will, might not be enough to protect your assets and beneficiaries in the long run.
What is an Informal Will?
An informal will is a handwritten document that outlines an individual’s last wishes and is signed by the deceased. Unlike a formal will, which requires the presence of witnesses and legal guidance, an informal will can be created without any assistance.
The Risks of an Informal Will
While creating an informal will might seem like an easy solution, it can lead to complications for your beneficiaries and your assets in the long run. Informal wills are often contested in court, leading to delays in the distribution of assets, increased legal fees, and even disinheriting loved ones.
Additionally, informal wills may not comply with state law requirements, such as the need for witnesses or specific language, leading to invalidation of the entire document.
The Benefits of a Formal Will
A formal will, on the other hand, is a legal document that is created with the guidance of an estate planning professional, ensuring that the document is compliant with state laws. Formal wills are witnessed, notarized, and provide clear instructions on how assets are distributed, minimizing the risk of disputes between beneficiaries.
Additionally, formal wills can include provisions for minor children, the appointment of guardians, and trusts to protect assets from creditors or unnecessary taxes.
Conclusion
In conclusion, while creating an informal will may seem like a quick and cost-effective solution, it comes with significant risks that could jeopardize your assets and beneficiaries. A formal will provides legal protection and concise instructions, ensuring that your last wishes are carried out in the way you intended. Remember, proper estate planning is essential for protecting your loved ones and ensuring that your assets are distributed according to your wishes.
