Creating a will is not just a task reserved for the elderly or wealthy. It is an important step for those who are well-prepared.
Recent years have served as a stark reminder that no one knows when their last days will come. Data from the Centers for Disease Control and Prevention shows that life expectancy in the U.S. has decreased in both 2020 and 2021 due to COVID-19 deaths and an increase in accidental deaths.
According to the CDC, over 1 million people in the U.S. have died from COVID-19. Additionally, accidents or unintentional injuries were the fourth leading cause of death in the country in 2021.
While it is unlikely that you will die at a young age, having a will in place, even if you feel you don’t need one, can prevent important decisions regarding your assets and guardianship from being left to your state’s laws and courts. And creating a will doesn’t have to be expensive.
The Consequences of Not Having a Will
If you pass away without a will, known as dying intestate, your assets will be distributed by a probate court according to your state’s laws of intestacy. This can result in a longer and more complex process, as inheritors must file a petition to claim the assets.
The specific laws of intestacy vary among states, but they generally prioritize close family members as beneficiaries. Without a will, your funds could end up in the hands of unintended recipients, warns Regina Kiperman, managing attorney at estate planning law firm RK Law PC in New York.
Dying intestate can have detrimental effects even if you don’t have a spouse or children. In such cases, your next of kin would likely be a parent. However, significant assets can disqualify an older adult from Medicaid eligibility, according to Kiperman.
If you have children, having a will is just as crucial. Regardless of whether you have assets to pass down, a will is the only way to legally name a guardian for your child in the event of your death. Otherwise, state laws will determine who will care for your child and what they will inherit.
When is the Right Time to Make a Will?
“The right time to make a will is based on life events, not age,” says Kiperman. These events typically fall into three categories: acquiring assets, legal attachment to someone else, and the risk of death. For example, buying a house, getting married or having a child, and receiving a health diagnosis or engaging in remote travel can all be triggers for creating a will.
In some cases, it can be helpful to create a will as soon as you reach the legal age, which is 18 in most states. Singer and content creator Mariel Picknelly made a will as soon as she turned 18 to protect assets that were titled to her at birth. Having her own will has provided her and her family with peace of mind about the future.
“I keep my purse close because I don’t want anyone to take the things that are meant for me and my family and my future,” she says. “A will works the same way.”
How to Begin Creating a Will
Creating a will doesn’t have to be a time-consuming or costly task. There are websites that offer free will templates, but make sure they comply with your state’s requirements. Online will-making software also allows you to customize your will for around $100.
For those with more complex assets or family situations, consulting an estate planning attorney may be beneficial. The costs can range from around $200 to $350 per hour, or $1,000 to $2,000 for a flat-rate estate package, depending on your location and the experience of the lawyer.
In some cases, a will may not be enough. Setting up trusts can expedite the transfer of assets and provide greater control. This can help bypass the time-consuming probate process, which is the legal process for distributing assets of a deceased person. Trusts are particularly useful for individuals with volatile assets or those who want to determine how minor children or lifelong dependents will inherit assets in a more controlled manner.
However, just because there may be more optimal estate planning tools doesn’t mean a will isn’t valuable. It is better to have an imperfect plan than none at all.
“Having a will is not just for rich people,” says Picknelly. “It’s for careful people. You don’t need a large amount of assets; you just need protection for when you’re not around to speak for yourself.”
This article was written by NerdWallet and was originally published by The Associated Press.
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Dalia Ramirez writes for NerdWallet. Email: [email protected].
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