| I have a good friend who refuses to make a will. He claims it's a reminder of his own mortality. He also admitted he's always avoided preparing his will out of fear that it will bring forward his inevitable fate. (I am not making this up.)
So, let me be perfectly clear: Superstition is no excuse for not preparing your will.
Why is it so important to create a will?
Basically, you get to make informed decisions about exactly who gets your stuff when you die.
A will clearly spells out your wishes regarding, for instance, the care of your children and also the distribution of your assets after your death. Failure to prepare a will leaves your estate in the hands of judges or state officials and it may also lead to some family strife.
Without a will (or other set plans, like a living trust), your state laws will determine how your property will be distributed and who gets what. Usually that means your closest relatives. With that said, do you really want to take the risk that your pain in the butt brother-in-law gets your vintage sports car? Or that one sister you never spoke to in 20 years gets access to your summer home? Well, they could if you don't make specific plans on exactly who gets what in your will.
Meanwhile, many people believe having a will or estate plan is only for the rich.
In fact, a survey from Caring.com reported that 33% of respondents said they didn't see the need for a will because they don't have enough assets to pass on to their loved ones. This is a common misconception. Even people with only a few assets should create a will to settle their estates upon their death. Creating a will is not just for your benefit, but also for the benefit of your loved ones.
The bottom line: A will may be the most important document that you ever write because it allows you to select the people who will receive what you own when you die. If you don't have one in place, you cannot select the recipients of your property and the state you reside in will determine how your property is divided.
For more cool stuff like this, be sure to visit CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. |
EmoticonEmoticon