Lesson 34: Who Gets What - Drawing Up a Will
Hello Revolutionists,
If you've been faithfully living the Cheapskates way and following the lessons so far you will be able to achieve a level of financial security. You will build up your assets, and live the life you
dream of, debt free and cashed up.
So who is going to inherit your estate and benefit from your wisdom? You want your belongings to go to the people you want them too. There's nothing sadder that watching family members fight and argue over a deceased loved one's estate, or worse still, have a
complete stranger decide how your assets will be divided (and take a large chunk for the honour) because you didn't leave a valid will.
No one wants to think about dying, but it's a part of the cycle of life. We are all going to die eventually, and being responsible enough to plan ahead takes a burden off your family.
Writing a Will
There is no such thing as a simple will, regardless of what your solicitor may tell you. Some are just more complicated than others. Drawing up a will isn't the most exciting thing you can do, and it may be tempting to put it off or even skip it altogether. But take the time to make an appointment with your solicitor and get your will worked out. You'll feel so much happier, have real peace of mind and security when the paperwork is done.
A legal will is a very important document and it is best drafted by a solicitor. You can buy kits where you can draft your own, but for just a few dollars more you can have your will drawn up so that it reflects your wishes exactly. The cost will vary from solicitor to solicitor and depending on the complexity of your estate, but it is a necessary expense.
If you do choose to use a will kit and draft your own will, get it checked over by a solicitor. Wills are in a complex legal area and it is much better to be safe than sorry. While you won't be around to deal with the "sorry" your heirs will and you want them to inherit all your estate, not what's left after the legalities are sorted out.
It's Not Just the Will That Matters
While you are getting your will drawn up, there are a couple of other documents you should get out of the way at the same time.
A durable power of attorney is a simple document that provides someone with the authority to act on your behalf should you become incapacitated and no longer able to handle your affairs. This document only comes into effect if and when you are unable to look after your affairs yourself, they cannot act on your behalf at any other time.
A medical power of attorney, sometimes called a living will, give the person you appoint the right to make medical decisions on your behalf should you not be able to do so. Again, they can only act for you if you are unable to make your own decisions.
A solicitor can draw them up for you and explain them in detail if you don't fully understand what they are and how they are used. DO NOT SIGN these documents (or any document for that matter) unless you completely understand what they are and how they will work for
you. If you are not sure about the possible repercussions of the medical power of attorney, have a chat with your family doctor before you sign the document.
Don't Forget the Kids
If you have minor children (under 18 years of age) remember to appoint the adult/s you want to act as their guardian/s in the event of your death. This can be an agonizing decision. You may not necessarily want your closest blood relatives caring for your children. You may want your best friend to care for and raise them instead. Don't forget to ask your best friend/s before you sign the document, just in case they are not comfortable with your choice. And it may be best to let the rest of the family know of your decision too, to avoid any distressing arguments and upset to your children. Speak to your solicitor about how best to handle this. A
simple way is to write a letter explaining, briefly, your choice and the reasons and circumstances that led to it. This is often enough to stop the arguments. After all, the main priority is the children, and getting them settled and secure again after what would be a traumatic time for them.
If you have pets you might like to do a similar thing for them, and even mention them in your will.
Making Funeral Arrangements
Morbid though it may seem, getting your funeral planned and paid for before you need it is a good thing.
Give some thought to your funeral arrangements. Do you want a formal burial? Or perhaps a cremation makes more sense to you. Would you rather donate your body to science? Do you want a church service or a civil service at the funeral home or graveside?
I know it seems a little morbid but making arrangements for burial plots and coffins before you die not only takes a horrible job away from grieving family and friends, but it can save them a bundle
too.
Wayne's Granny had the right idea. After his Grandad died, Granny sold the farm and bought her unit. She also arranged her funeral. She chose a casket, arranged the plot, chose the hymns and the church and requested no flowers. She was a very frugal lady and couldn't bare the thought of spending money on flowers only to have them sit outside with no-one to enjoy them. Granny also paid for her funeral and the money was put into a trust fund to cover any
price increases.
Granny Armstrong came from strong, sturdy stock and lived for 31 years after she made these arrangements. When Dad and his two brothers where settling her affairs after the funeral they were absolutely gobsmacked to receive a cheque from the funeral director - for the balance of the funeral trust fund. Granny's money had been in trust so long that it had not only covered the cost of her funeral but made a profit for her estate! She would have loved knowing that she made money on her own funeral.
You can leave detailed instructions for your funeral. Will there be a viewing? Open or closed casket? Do you want flowers? Or would you rather donations to a favourite charity in your name? My uncle requested no flowers, but rather donations be made to the hospice where he spent his final days, to be used to make the family rooms more comfortable. There are now three lovely new recliner rockers that recline into comfortable beds, bought with the donations made in his name, for relatives of patients to use.
You don't have to write all these details down. But do discuss them with your spouse or partner and your children (if they are old enough) or two or three good friends.
With the cost of a bare bones, no frills funeral being around $11,000 putting a little aside each week to cover costs may sound morbid but when you think about it could your family find (at the very least) that much money in just a couple of days? Especially when they are grieving?
Making your final arrangements a part of your financial plan will be a blessing to your family. Discuss with them your plans for your funeral and be open about death. It's not something we want to talk, or even think about, but it is going to happen.
Having the arrangements made and a plan in place, even a simple one, takes the guesswork out of the funeral arrangements for your loved ones.
If you've been faithfully living the Cheapskates way and following the lessons so far you will be able to achieve a level of financial security. You will build up your assets, and live the life you
dream of, debt free and cashed up.
So who is going to inherit your estate and benefit from your wisdom? You want your belongings to go to the people you want them too. There's nothing sadder that watching family members fight and argue over a deceased loved one's estate, or worse still, have a
complete stranger decide how your assets will be divided (and take a large chunk for the honour) because you didn't leave a valid will.
No one wants to think about dying, but it's a part of the cycle of life. We are all going to die eventually, and being responsible enough to plan ahead takes a burden off your family.
Writing a Will
There is no such thing as a simple will, regardless of what your solicitor may tell you. Some are just more complicated than others. Drawing up a will isn't the most exciting thing you can do, and it may be tempting to put it off or even skip it altogether. But take the time to make an appointment with your solicitor and get your will worked out. You'll feel so much happier, have real peace of mind and security when the paperwork is done.
A legal will is a very important document and it is best drafted by a solicitor. You can buy kits where you can draft your own, but for just a few dollars more you can have your will drawn up so that it reflects your wishes exactly. The cost will vary from solicitor to solicitor and depending on the complexity of your estate, but it is a necessary expense.
If you do choose to use a will kit and draft your own will, get it checked over by a solicitor. Wills are in a complex legal area and it is much better to be safe than sorry. While you won't be around to deal with the "sorry" your heirs will and you want them to inherit all your estate, not what's left after the legalities are sorted out.
It's Not Just the Will That Matters
While you are getting your will drawn up, there are a couple of other documents you should get out of the way at the same time.
A durable power of attorney is a simple document that provides someone with the authority to act on your behalf should you become incapacitated and no longer able to handle your affairs. This document only comes into effect if and when you are unable to look after your affairs yourself, they cannot act on your behalf at any other time.
A medical power of attorney, sometimes called a living will, give the person you appoint the right to make medical decisions on your behalf should you not be able to do so. Again, they can only act for you if you are unable to make your own decisions.
A solicitor can draw them up for you and explain them in detail if you don't fully understand what they are and how they are used. DO NOT SIGN these documents (or any document for that matter) unless you completely understand what they are and how they will work for
you. If you are not sure about the possible repercussions of the medical power of attorney, have a chat with your family doctor before you sign the document.
Don't Forget the Kids
If you have minor children (under 18 years of age) remember to appoint the adult/s you want to act as their guardian/s in the event of your death. This can be an agonizing decision. You may not necessarily want your closest blood relatives caring for your children. You may want your best friend to care for and raise them instead. Don't forget to ask your best friend/s before you sign the document, just in case they are not comfortable with your choice. And it may be best to let the rest of the family know of your decision too, to avoid any distressing arguments and upset to your children. Speak to your solicitor about how best to handle this. A
simple way is to write a letter explaining, briefly, your choice and the reasons and circumstances that led to it. This is often enough to stop the arguments. After all, the main priority is the children, and getting them settled and secure again after what would be a traumatic time for them.
If you have pets you might like to do a similar thing for them, and even mention them in your will.
Making Funeral Arrangements
Morbid though it may seem, getting your funeral planned and paid for before you need it is a good thing.
Give some thought to your funeral arrangements. Do you want a formal burial? Or perhaps a cremation makes more sense to you. Would you rather donate your body to science? Do you want a church service or a civil service at the funeral home or graveside?
I know it seems a little morbid but making arrangements for burial plots and coffins before you die not only takes a horrible job away from grieving family and friends, but it can save them a bundle
too.
Wayne's Granny had the right idea. After his Grandad died, Granny sold the farm and bought her unit. She also arranged her funeral. She chose a casket, arranged the plot, chose the hymns and the church and requested no flowers. She was a very frugal lady and couldn't bare the thought of spending money on flowers only to have them sit outside with no-one to enjoy them. Granny also paid for her funeral and the money was put into a trust fund to cover any
price increases.
Granny Armstrong came from strong, sturdy stock and lived for 31 years after she made these arrangements. When Dad and his two brothers where settling her affairs after the funeral they were absolutely gobsmacked to receive a cheque from the funeral director - for the balance of the funeral trust fund. Granny's money had been in trust so long that it had not only covered the cost of her funeral but made a profit for her estate! She would have loved knowing that she made money on her own funeral.
You can leave detailed instructions for your funeral. Will there be a viewing? Open or closed casket? Do you want flowers? Or would you rather donations to a favourite charity in your name? My uncle requested no flowers, but rather donations be made to the hospice where he spent his final days, to be used to make the family rooms more comfortable. There are now three lovely new recliner rockers that recline into comfortable beds, bought with the donations made in his name, for relatives of patients to use.
You don't have to write all these details down. But do discuss them with your spouse or partner and your children (if they are old enough) or two or three good friends.
With the cost of a bare bones, no frills funeral being around $11,000 putting a little aside each week to cover costs may sound morbid but when you think about it could your family find (at the very least) that much money in just a couple of days? Especially when they are grieving?
Making your final arrangements a part of your financial plan will be a blessing to your family. Discuss with them your plans for your funeral and be open about death. It's not something we want to talk, or even think about, but it is going to happen.
Having the arrangements made and a plan in place, even a simple one, takes the guesswork out of the funeral arrangements for your loved ones.