Chances are that if you are over the age of 18 and have made some money of your own, you have thought about a will. What might first pop into your mind is, “I want my car to go to Avery, my house will go to Henry, and my baseball card collection will go to my niece Anna.” While this is correct, and is the main the intention of a will,

how do you know if you need one?

Do you only need one if you meet certain criteria? Are there other reasons you would need a will? In this post I will explain the basics of a will and when the right time is to set one up!

What is a Will?

A will, sometimes referred to as a Last Will and Testament, is a legal document that allows a person to dictate how their estate will be managed and distributed upon their death.

Your Wishes

The primary purpose of a will is to express what your wishes are after you have passed away. There are two main priorities when it comes to expressing your desires.

The first priority is how you wish your property to be allocated. Do you want your estate to be divided amongst your children? Your spouse? A charity? Or someone else?

The second focus is choosing the people needed to care for your final affairs.

You will need to select a person to name as the guardian for your minor children and the executor for your estate. The executor is the person that coordinates everything written in your will. For example, they are responsible for making sure your all of your debts are paid before allocating your assets to the people you named as beneficiaries.

While your property and your children are the top priorities, your will can also include preferences for your burial arrangements and other specific funeral requests.

These examples are only part of what a will covers. The rest of your will has more technical-legal information that you will typically discuss when meeting with your estate planning lawyer.

Making a will VAlid

Your will must be considered valid by the court. You might be thinking, can't I just tell my family what my last wishes and requests are? I will type it out and have it notarized! Isn't that enough?

To put it simply, no, that is not enough! Having a will does not mean that you can write everything down on paper, sign it, and call that your last testament!

The court system and legal process do not work like this. If your will is declared invalid, the court will determine how your assets are distributed (and who will take care of your children) based on predetermined laws.

A valid will must meet specific baseline-legal requirements, be registered and filed according to your state's laws, and be signed and notarized in front of TWO witnesses!

Any questions regarding the validity of your will should be brought up with your estate planning attorney.

Effective Date

Your will is only effective upon your death.

This point is worth considering if you become incapacitated but are still alive. In this scenario, your assets are not protected by your will because your will does not become effective until after you die.

Privacy

Your will is going to become a public document. Once you pass away and your executor takes your will to court, it becomes an official record, and anyone (yes, anyone!) has access to it.

This lack of privacy may or may not be meaningful to you, but it is worth considering that your will does not protect you from privacy.

Who Needs a Will?

The short answer is that almost all adults are going to need a will! The necessity of having a will increases based on different circumstances.

For example, 18-year-old adults don't typically have wills. They don't have many possessions to manage and won't have any children.

As people age, however, they tend to acquire more possessions and are more likely to start a family -- thus increasing the value and importance of having a will in place.

Size Doesn’t Matter

It doesn't matter how big your estate is. Only have $100 to your name? You still need a will! Where do you want that money to go if something happens to you? Whom do you want to close out your accounts? Do you own a meaningful possession that you wish to pass on? These are all questions answered by a will.

It’s the How

The law has predefined ways to divide people's money and estates once they pass away. This will vary depending on the state, but what the law decides may or may not be how you want it! If you're going to choose which child gets what items, you need a will! If you care how your property is distributed, you need a will!

If you want to be in charge of the how, you will need to set up a will! Maybe you want the house to go to your oldest daughter and your bank account to go to your son. Or perhaps you prefer everything divided equally. Each family has different ways and styles of handling these things.

It is also necessary to consider that your assets could change over time. While your house and bank accounts are worth a certain amount today, they may not be worth that amount sometime in the future – when your will is actually in effect. Your house could gain value, or the value of your mutual fund could drop. These facts are worth considering when you decide to divvy up your estate and something your estate planning lawyer can help you through.

Reducing the Burden

I think it's safe to say that most people don't want their children fighting over their things after they've passed away. The best way to avoid this is to have your estate plan in place – and a will is one of the tools to use to indicate how you want things divided.

Your loved ones won’t have to wonder about what you wanted because you've already taken the time to define it into a document.

Coordinating Your Final Affairs

When you create a will, you must name an executor. An executor is a person that figures out your accounts and coordinates your property’s distribution.

What are the different sources of money? What property do you own, and how much is it worth? What debts do you have? How much do you owe? Your executor will pull all these questions together and reconcile your debts vs. your assets.

If you do not name an executor (i.e., no will in place), the court will assign an executor on your behalf, and this will most likely not be a person you trust or someone who knows your situation.

Sum It Up

A will is going to legally express your wishes to the court. Most adults need a will, regardless of how much money they have or if they have any children.

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