Why You Need a Will

By Jennifer Chappell Smith

Ever wondered why you need a will? No one likes to think about a will — that serious legal document that only takes effect when you’re no longer here. Some people loathe the thought so much they never get around to it. Others think they don’t have enough assets or savings to bother with the trouble.

But no matter the size of your estate, a will is the only way to make sure your wishes get carried out, including exactly who will take care of your kids and how caregivers help your children manage their inheritance.

“It’s just good financial housekeeping to have a will,” says Eleanor Blayney, consumer advocate of the Certified Financial Planner Board of Standards, Inc.

Common misconceptions about wills

Often, younger couples believe they don’t need a will.

“They think that because they own their home jointly and have their retirement assets with beneficiaries designated that they don’t need a will,” Blayney says.

They don’t realize they’re causing potential headaches or heartbreak for survivors trying to guess what they would have wanted about other details of their estate.

And in her work as a Certified Financial Planner™ practitioner, Blayney has seen clients surprised by sudden windfalls. “You could win the lottery and pass away the next day,” she says. “A will provides for your wishes to be known.”

3 reasons to make a will

Here are 3 reasons not to procrastinate:

  1. To direct what happens to your estate. That includes anything you own — from your house and car to your album collection. Want to leave to chance what happens to your property? Not to mention the cash in your savings account and any other assets you own. (Click here for tips about home insurance.)
  2. To name a guardian for your children. Blayney says this is the most important reason of all. A will is the only way to ensure that you — and not a judge — get to name the legal guardians for your children. Not fun to think about, and the decision about who to name as your first and second choices for guardianship can lead to tough discussions (i.e. “Why your parents instead of mine? Or your brother instead of my sister?”).
  3. To make it easy on your family. If you die without a will, or what’s called “intestate,” the state takes over and a judge controls who gets what. Plus, the process can take much longer and cost more — providing a real hassle for people you love.

In addition to storing your will in a safe place, Blayney recommends you update the will every 3 to 5 years, or after a major life event, such as a birth, a death, or a move to another state. “Tax laws change, too,” she adds, pointing out that they can affect your decisions about your estate and how to best protect it for your heirs.

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