It’s Time to Write Your Will

Talking about making a will is about as popular as talking about insurance. Truth be told, people would rather talk about insurance! I’m going to bravely move forward anyway.

Having a will is part of the estate-planning process. If you have already done your will, good job! But read on, because there are other things for you to consider.

Common Excuses

If you haven’t done your will yet, why not? My bet is it’s one of the following reasons:

• I don’t like to think about dying.
• I’m not old enough.
• It’s too complicated.
• I can’t afford it.
• I don’t know who to name as guardians for my kids.
• I’ll do it later.

Dying without a will is called “intestate.” Your state’s intestacy rules will determine who inherits your assets, requiring court proceedings. If you care about who gets your assets, you need to have a will.

Are you avoiding making a will because you don’t like to think about dying? Nobody likes to think about dying! But once you get it over with, you won’t have to think about dying for a while.

Durable Power of Attorney

If you are young and have no assets, you might not need a will. But there are other documents you need even with no assets. Everyone needs to have durable powers of attorney for healthcare and finances. The durable power of attorney for healthcare designates someone to make healthcare decisions for you if you are unable to. Let’s say you live with your longtime girlfriend and, unfortunately, end up unconscious in the hospital. Because you’re unconscious, you can’t approve or refuse surgery. Without a durable power of attorney for healthcare, the doctor has to go to the next of kin defined by your state—not your girlfriend—even if that’s a sibling you haven’t talked to for years. If you want someone you trust to make decisions, you need a durable power of attorney for healthcare. Similarly, if you are incapacitated, you will need someone you trust to handle your finances. That’s the purpose of a durable power of attorney for finances.

Are you avoiding drafting a will because it’s too complicated? Most wills are fairly straightforward. You just need to name who will receive your assets upon your death. If you use an attorney, they will make it easy for you.

Are you afraid it will be too expensive? A will can cost as little as a few hundred dollars to about $1,000. As your situation becomes more complicated, the cost can increase. If you want to minimize costs, you can write your own will using online templates that are approved by your state. But to be safe and to get the durable powers of attorney as well, I recommend using an attorney. Be sure to check your employee benefits; sometimes companies offer legal services to help with this.

Naming guardians for your children can sometimes be a daunting decision. Rather than delay and risk the court assigning someone, choose the best person for now. You can always change your mind and amend your will later. It’s a good idea to get the thumbs up from whoever you decide to name!

What About a Living Trust?

If you already have a basic will or have more than a small estate, you should consider a living trust. A will can ensure your assets pass according to your wishes. But, it will not avoid probate, which can apply to estates of over $50,000 (or less, depending on your state). Probate is a long, expensive court process that freezes your assets in the interim. If you want your heirs to avoid probate, a living trust is the way to go. While you are alive, it’s not much more complicated than a will. But it is a little more complicated to draft, so you’ll definitely need an attorney. Your heirs will thank you.

Still want to put it off? You could be risking a lot by waiting. Why not make an appointment today?