As parents, our lives undergo significant changes once we have children. Every decision we make revolves around their well-being and security. However, one critical aspect that many parents overlook is writing a will. While it’s not easy to think about our mortality during such a joyous time, creating a will becomes essential when you have dependents who rely on you. A well-drafted will can safeguard your child’s future and provide financial security.
In this article, we’ll explore why every parent should have a will and how it can protect your children in unexpected situations.
Why Parents Should Have a Will?
A will is a legal document that ensures your wishes are followed regarding the distribution of your assets, the care of your children, and other important matters. Without one, your family could face lengthy legal battles, unnecessary expenses, and uncertainty. Here are four critical reasons why parents should prioritize writing a will:
01.
Decide How You Want to Distribute your Assets
If you pass away without leaving a valid will, your assets will be distributed according to Malaysia’s laws, namely the Distribution Act 1958 (Amended in 1997) for West Malaysia and Sarawak. In this case, you relinquish the right to decide who benefits from your hard-earned money. This process may not align with your wishes, potentially leaving your loved ones in financial difficulty.
Many of my clients mistakenly believe that their spouse will automatically inherit all their assets. In reality, your estate (including joint accounts and investments) becomes frozen upon your passing. Family members may face a complex legal process that could take 2-5 years to resolve. Why leave your loved ones waiting that long when you can ensure clarity and efficiency with a will?
By having a will, you can also specify how much each family member receives or even allocate funds to charity. This ensures your legacy reflects your personal values and intentions.
02.
Appoint a Trusted Person for your Child’s Inheritance
Children under 18 cannot legally inherit your assets. To protect their interests, you need to appoint a trustee who will manage your estate on their behalf. The trustee ensures that funds are used appropriately for your child’s living expenses, education, and healthcare until they reach the age you specify.
By including this appointment in your will, you gain control over who takes on this vital role. Choose someone experienced, professional, and trustworthy. If you’re unsure about selecting the right trustee, feel free to reach out to me for guidance. As a parent, I understand the importance of finding the best options for your children’s future.
Additionally, naming a trustee helps prevent potential conflicts among family members. You can ensure the appointed person follows clear instructions, minimizing misunderstandings or disputes over financial matters.
03.
Choose the Right Legal Guardian for Your Child
One of the most compelling reasons to have a will is the ability to name a legal guardian for your children. If both parents pass away or the sole custodial parent dies, the guardian named in your will takes on the responsibility of raising your children.
Without a named guardian, the court will decide who assumes this role, which could lead to disagreements among family members. Worse, your children might end up with someone whose values, lifestyle, or parenting style don’t align with yours. By naming a trusted guardian in your will, you can ensure your children are cared for by someone who shares your vision for their upbringing.
If you are a single parent or widow, appointing a guardian is even more critical. Consider discussing your decision with the person you choose to ensure they’re prepared and willing to take on this important responsibility.
04.
Delay Inheritance
In Malaysia, children can legally inherit property at the age of 18. However, many parents feel that this is too young for their children to manage substantial assets responsibly. Without proper planning, your children might deplete their inheritance quickly.
To address this, consider setting up a family trust through your will. A trust allows you to control how and when your children receive their inheritance. For example, you could release funds in stages, such as 50% at age 22 and the remaining balance at age 25. This ensures that your hard-earned wealth is preserved and used wisely.
A delayed inheritance strategy not only protects your children from poor financial decisions but also teaches them the value of patience and responsible money management.
Comprehensive Estate Planning for Your Family’s Needs
While a will is a powerful tool, it may not be sufficient on its own. It’s essential to ensure that the assets you leave behind can support your family’s financial needs until your children become independent. This involves evaluating your life insurance coverage, investments, and savings to ensure they align with your goals.
As a licensed financial planner, I offer complimentary calculations to help you determine whether your estate plans are adequate to secure your loved ones’ future. This holistic approach ensures no aspect of your financial legacy is overlooked.
Take Action: Protect Your Child’s Future Today
Drafting a will is one of the most important steps you can take to safeguard your child’s future. By clearly outlining your wishes, appointing trusted individuals, and planning for delayed inheritance, you can ensure your children are protected and provided for, no matter what happens.
If you’re ready to start your estate planning journey or need advice on choosing the right trustee or guardian, book a free 30-minute consultation with me. Fill out the “Request A Consultation” form, and let’s work together to create a plan that gives you peace of mind and secures your family’s future.
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