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How to Protect Your Financial Future by Creating a Will

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How to Protect Your Financial Future by Creating a Will

August 17, 2020

Let’s face it – nobody wants to think about death. But thinking about your end-of-life arrangements, particularly concerning your finances, is a surprisingly proactive and important step in securing your financial future and the future of your loved ones. Creating a will isn't just about legal formalities; it’s about control, peace of mind, and ensuring your wishes are honored.

Why Do You Need a Will?

Without a will (also known as a “last will and testament”), your assets will be distributed according to the laws of intestacy in your state. While this might seem straightforward, it doesn’t necessarily align with your personal desires. Here’s why having a will is crucial:

  • Control Over Your Assets: You decide exactly who receives what – your spouse, children, family members, charities, or anyone else you choose.
  • Minimizes Probate Costs: Probate is the legal process of validating a will and distributing assets. Without a will, probate can be significantly more time-consuming and costly.
  • Protects Your Loved Ones: A well-written will ensures a smoother transition of assets, reducing stress and potential conflict for your family.
  • Designates Guardians for Minor Children: If you have children under 18, a will allows you to name a guardian to care for them if something happens to you. This is arguably the most important reason for having a will.
  • Streamlines the Process: Having clear instructions simplifies the entire process for your executor (the person responsible for carrying out your wishes).

Key Steps to Creating a Will:

  1. Inventory Your Assets: Make a detailed list of everything you own, including real estate, bank accounts, investments, personal property, and life insurance policies.

  2. Determine Your Beneficiaries: Decide who you want to inherit your assets. Be specific – list full names and addresses.

  3. Choose an Executor: This is the person you trust to manage your estate and carry out your instructions. Consider a family member, a trusted friend, or a professional.

  4. Write Your Will: You have several options:

    • DIY Will Kits: These are available online and can be a cost-effective option for simple estates. However, they may not be suitable for complex situations.
    • Online Will Services: Platforms like LegalZoom and RocketLawyer offer guided will creation.
    • Hire an Attorney: This is the most expensive option, but it ensures your will is legally sound and tailored to your specific needs.

  5. Review and Update Regularly: Life changes – marriage, divorce, birth of children, changes in assets – all warrant a review of your will. It’s generally recommended to review your will at least every 3-5 years, or whenever there’s a significant life event.

Resources to Help You:

Disclaimer: This blog post provides general information and should not be considered legal advice. It’s essential to consult with an estate planning attorney to discuss your specific circumstances and ensure your will accurately reflects your wishes and complies with the laws of your state.