What is a Will?
A Last Will and Testament, commonly known as a will, is a legal document that communicates a person's final wishes regarding their property and dependents. It specifies how your assets (your "estate") should be distributed, who should care for your minor children, and who should be in charge of carrying out your instructions.
Many people believe wills are only for the wealthy, but that's a dangerous misconception. Anyone who owns property or has children should have a will, regardless of the size of their estate.
What Happens If You Die Without a Will?
If you die without a valid will, you are said to have died "intestate." When this happens, the state's intestacy laws will determine how your property is distributed. A court will appoint an administrator to manage your estate, and your assets will be given to your closest relatives in an order determined by state law.
This process can lead to outcomes you never would have wanted. For example:
- Your property might not be given to the people or charities you would have chosen.
- If you have a partner but are not legally married, your partner may receive nothing.
- A judge, who does not know you or your family, will decide who becomes the legal guardian of your minor children.
Creating a will is the only way to ensure your wishes are legally binding.
What a Will Does
A will is a powerful tool that allows you to:
- Distribute Your Property: You can specify who gets what, from your home and savings accounts to sentimental items. The people or organizations who receive your property are called "beneficiaries."
- Name an Executor: The executor is the person or institution you trust to manage your estate. Their job is to pay your debts, collect your assets, and distribute them to your beneficiaries according to your will.
- Name a Guardian for Minor Children: This is one of the most important reasons to have a will if you have young children. You can nominate a guardian to care for your children if both you and the other parent are deceased.
- Create a Testamentary Trust: You can set up a trust within your will to hold assets for a beneficiary, such as a minor child, until they reach a certain age.
Creating a Valid Will
For a will to be legally valid, it generally must meet three requirements:
- The will must be in writing.
- It must be signed by the person making the will (the "testator").
- It must be signed by at least two witnesses who are not beneficiaries in the will.
While you can use online services to create a simple will, for more complex situations (such as blended families, business ownership, or significant assets), it is highly recommended to consult with an estate planning attorney.