Why writing a Will without first reviewing your financial plan is like putting the cart before the horse?

It can happen that upon death of testator, there is nothing or little money to distribute to your loved ones? How can this happen even though the Will is properly drawn and executed?

Some of the reasons that this can happen include

  1. Assets held jointly with other siblings. These assets will automatically pass on to the joint survivors who are not your dependents.
  2. Outstanding liabilities, where personal guarantees or loans need to be paid first before the beneficiaries.
  3. Medical expenses needed in the event of a prolonged sickness or treatment prior to death that could wipe out all your savings.
  4. Over-estimation of net worth resulting in insufficient amount to be given to beneficiaries.

It is prudent for one to consider having a holistic Wealth plan drawn up before writing the Will. This plan will incorporate your financial goals and objectives, net worth statement, insurance policies review as well as computing the amount of money needed by your survivors should you pass on. These will ensure that you have sufficient estate left for your beneficiaries. If there is a need, you can increase your life insurance coverage to create an instant estate…

Remember to review your Wealth plan before writing your Will. Put the horse before the cart and not the other way around…

Will Writing

Trust Planning

Planned Giving