But most of us who don't have a will have plenty of excuses why we haven't written one. Here are seven common excuses -- and why they don't hold up.
Excuse #1. I'm too young to have a will. Even if you plan to live a long, long time, there's always a chance that you won't. And unless you have a will, your heirs will be left with a tangle they will have to unravel. Your will is your way of saying who is to receive everything you own. So if you own anything at all, you need a will, no matter what your age.
Excuse #2. My family knows how to distribute what I own. Your family may have your best interests in mind, but without a will, the state says who gets what. Even though you want your spouse to inherit what you own, your kids will end up with a chunk of everything as well. That creates complications at a time when they are trying to cope with their loss.
Excuse #3. I don't have enough to need a will. Whatever you own, you need a will to say who gets it. Your earthly goods may have little monetary value, but family squabbles often begin over the least financially valuable assets. To prevent bickering, in your will say you are going to leave detailed instructions about personal property, then make a list of who gets what, and update it often.
Excuse #4. My mother will take the kids if I die. But what if your mother-in-law decides SHE wants the kids? Without a will, a judge will decide who will raise your children and will require a detailed annual report on how your children's money was used. Choose guardians wisely, then put your choices in your will. You may want to appoint one person to care for the kids and another person to care for their money.
Excuse #5. I can't afford to write a will. It doesn't cost much to write a will. Many states have fill-in-the-blank forms you can get from the state bar association. And there are plenty of good inexpensive software packages.
Excuse #6. Everything I have is in joint tenancy with my spouse. Property you own in joint tenancy with your spouse will pass to him, and any accounts that have named beneficiaries, such as retirement accounts, will pass to the beneficiaries no matter what your will says. But you'll still want a will in order to provide for the other assets that you own.
Excuse #7. I'm single, with no kids, so I don't need a will to protect my heirs. Single people need wills as much as married people do. With no will, the state will leave everything to your relatives, no matter how distant. If you have no relatives, the state will get it all. Without a will, your friends, surviving significant other and favorite charities won't get a thing.
If your situation is complex, visit a qualified estate-planning lawyer. If you have a patchwork family with children from different marriages, make sure that you address everyone's needs.
If you have an estate greater than $650,000 including life insurance, then do some planning to keep most of your estate from going to taxes. If your state has high probate costs, create a living trust and put title to your assets in the trust. Everything that belongs to the trust will pass in accordance with the trust's provisions, so you'll bypass probate and probate costs.
