What’s So Important About a Will?

When someone brings up a will, it’s often met with silence and a wave of tension. Why? Because it invites into conversation the three things we are taught to avoid discussing: death, money and politics.

Unfortunately, it’s unavoidable. Today isn’t promised and tomorrow is uncertain, so having a will is of the utmost importance. Otherwise, you may be creating more problems for the ones you leave behind.

Let’s start with the basics.

What is a will?

A will is a legally binding document that delegates what happens to your assets after you’ve passed away.

What is included in a will?

Assets that can be include are real estate, vehicles, jewelry, heirlooms, other personal effects and money.

What is not included in a will?

Things that cannot be included in a will are your 401k, IRA, other retirement plans, stocks and bonds, and life insurance. This is because you already have to assign a beneficiary should something happen.

What makes a will legally binding?

A will is legally binding because it is signed by you and a witness as well as notarized and recorded.

Can I change my will?

Yes. Your will can be changed. It’s a fluid document meaning it doesn’t going affect until you pass away and can be updated at any time.

Where do I create a will?

There are two ways to create a will:

1. An attorney. Attorneys are great for drawing up complex wills. For instance, if you have a significant amount of real estate or assets, consulting with an attorney may be your best bet. However, they can be pricey.

2. Online legal service. The most cost effective way to create a will is to use an online legal service. They provide the same services and your will is just as legitimate as if you were to go through an attorney. Even better, it takes half the time and costs half the amount of a typical attorney.

So, what makes a will so important?

Many people think that when they pass away their assets automatically get split up between the remaining members of their family. Or, that they can divvy it up themselves.

But that’s not true.

If you don’t create a will, your assets will transfer to a judge who then appoints an outside executor – someone in charge of divvying up your assets.

This person has no connection to your family and delegates what remains per state order.

Something to note: each state has a different process.

By creating a will you have control over what happens to your money and property. You get to:

• Choose your own executor of state – someone who will be in control of delegating your personal effects.
• Determine who gets what and how much.
• Avoid making your family struggle for months or even years deciding who gets what part of your assets.

Where should you keep it?

General rule of thumb: keep your will somewhere that is waterproof and fireproof.

Most places keep a record of your will should something happen to it. However, to avoid any additional hassle, keep it somewhere close that someone – like the executor – has access to.

Your best bet would be a safe or a lockbox of some sort.

One last piece of advice…

Make sure the items in your will are insured.

The will is important, but so are the items that are listed in it. They are the last gifts you can give to your family – make sure that they get them.