Do you have a will?

It's pretty basic financial advice.  Right up there with spend less than you make, contribute to your 401k and buy used cars. You should have a will.  But do you?

I don't.  I haven't even scratched out on a piece of paper whether my parents, siblings or fiancee should get anything.  I have some assets.  Take a look at my latest Net Worth Update if you're curious.  I have six figures worth of assets, but I don't have a will.

I'm willing to bet that most of you don't.  So why is that?

Some people think that it is complicated.  They don't want to take the time or expense of meeting with an Estate Planning Attorney.  Others think that wills are only for rich people.  We've seen too many movies, like Brewster's Millions, where a rich uncle bequeaths a crap load of assets with all kinds of quirky rules attached.  Many of us don't want to think about it.  Our own death, that is.

Well, as one still without a will, I may not be in a position to preach, but let me respond to those concerns.  First, a will can be an extremely, inexpensive document to put together.  Of course the complexity and expense will generally go up as you have more assets and more wishes as to the distribution of those assets.

Second, it doesn't matter if you are deciding who gets your Pink Floyd albums and baseball cards, or how your house, 401k, and investment portfolio should be distributed.  If you have assets and would like to have a say in what happens to it, you should have a will.

Last, the whole mortality thing.  Look, it's going to happen.  A will isn't for you, it's for your loved ones.

One final point, and the most important one.  If you have kids, you MUST have a will.  Unless you want the court and some judge who doesn't know you or your kids to decide who is going to raise your kids, you MUST have a will.  This one I can't stress enough.  This is the only way that I know of to decide who will raise your kids if something should happen to both you and your baby mama or daddy.

You may think your mom, or your sister or the parents of your kid's best friend would be the ideal guardian in the event of your premature death.  But without a will, that may not be the way.

Comments

[financial freedumb]

How would you recommend going about getting a will made? I've seen some software packages costing around $70.00...

Could I just write down where I want things to go and get it notarized lol?

[lamoneyguy]

Hey FF,
There are a ton of resources out there. I'm certainly not qualified to recommend which one is best, but I'm pretty sure it doesn't have to be that complicated, unless you want it to be.

[financial freedumb]

I have to look into it...I kind wet my feet a couple of times, but I never really dove in...I guess since I don't have dependents...but still, I want to have some say in where my assets go should something bad happen...

[Jer]

What about setting a up a trust? I highly recommend it. It will save your heirs tons of dough (they won't have to go thru probate and other tax sheltering possiblities).

Most estate attorneys charge around $2500 to set this up. But once its set its set forever and you can place all of your assets in the trust. Its well worth the investment. A will good and necessary but creating a family trust is just as important.