Leave your heirs in peace, not exchanging blows

By John Karikui

Court battles over the inheritance of property often crop up when a wealthy person dies as children fight to lay hands on the estate left behind.

But one can avoid this by writing a will. If you die without a will (dying intestate in legal terms), claimants of all sorts can step in and deal with your estate as they see fit. Or, as is likely to happen, most of your wealth will go to settling lawyers’ fees in the ensuing battles.

When the state takes over, your family sits in limbo as your estate lingers in probation, possibly for years.

Since you left no directions, your assets are divided up according to prescribed legal inheritance formulas, which favour the official next of kin. Anyone you had wished to have a share of your estate may not inherit anything if they don’t fall under the umbrella of the statutes.

Prepare to die (at least on paper) by writing a will. A will outlines how your assets can be handled after your demise. It details out who gets what from your estate; who you want to take care of your children (minors).

A will also establishes trusts for children to pursue their education and how other beneficiaries, such as charities, get their take. It details out who will be your executors. If you have children from a previous marriage and an estate that may be subjected to taxes, you definitely need to prepare this important document.

And while writing a will, you can put a measure of responsibility in your children by threatening to leave them out if they don’t spruce up their financial discipline.

The first step in writing a will is to consult a lawyer who is versed in estate. When drafted, witnessed and signed, keep the document with your lawyer.

Review your will at least every five years to include any new wealth that you may have acquired.

Take into consideration any changes in tax laws as you revise your will. Similarly, update your likely beneficiaries as they marry, have children, divorce or even die.

Tax purposes

While making the will, beware of what counts as an estate asset for tax purposes. And this is basically everything you own, including the face value of life insurance policies and the current value of retirement benefits.

As you formulate your will, prepare for some unforeseen and unpleasant events. For example, you might become incapacitated, either mentally or physically with several upgrades of your will still pending. Get the affidavits that allow the person you select to make decisions on your behalf.

Make sure that the right people know where to find all the documents.