Mortgage holders need an up to date Will.
Ever heard of the term “died intestate”? Roughly it means dying without a valid will. The consequence is that your estate including any property you own, will be divided according to the law, regardless of your wishes. The result is often not what you intended for your family. Residential or Investment Property that you wish to keep in the family or provide to specific individuals may effected or have to be sold. Even the family home may have to be sold in extreme circumstances.
A “Last Will and Testament” drafted professionally, is an essential risk management tool for property owners, especially mortgage holders. Properly drafted, it should not only determine various parties’ property rights, but also appoint an administrator to follow your instructions and ensure your estate is distributed in accordance with your wishes.
Lawyers preach that pro forma wills should be avoided as they are supposedly inaccurate and frequently challenged. However, something is better than nothing. I believe in this instance that you get what you pay for so the cheapest pro forma will may not be the best. Shop around for a product that suits you best. Your mortgage broker will know a reputable source for a DIY Will.
Your will should be reviewed every 12 months and be updated when your circumstances change, for example:
• Home purchase or mortgage refinance• Retirement
• Marriage or remarriage, divorce or separation
• The birth of children and grandchildren and their change of marital status
• Financial commitments
Powers of Attorney are other useful risk management tools for property owners and should be considered as essential as a will.
Organise a will today, it is good risk management. A will is a sure way to “speak from the grave” and have your plans carried out. It is as important as your mortgage interest rate.