Why a Will Is the Foundation of Your Estate Plan
Last week, we introduced five basic steps everyone should consider when building an estate plan. This week, we're starting where every plan should: the will. It's the most well-known estate planning document, yet many people put off writing one because they assume it's only necessary later in life or once they've accumulated significant assets. In reality, a will is valuable at any stage of adulthood and not having one can create real hardship for the people you leave behind.
What a Will Actually Does
A will is a legal document that spells out how you want your assets distributed after you pass away. But it does more than just divide property. It names an executor, the person responsible for managing your estate, paying off debts, and carrying out your wishes. If you have minor children, your will is also where you name a guardian to raise them, arguably its most important function for young families. Without this designation, a court will decide who raises your children, and that decision may not reflect your preferences at all.
What Happens Without One
If you die without a will, you're considered to have died "intestate." State law then determines who inherits your assets, typically following a fixed formula based on family relationships, regardless of your actual wishes. This can mean unintended outcomes: a long-term partner you were never legally married to could receive nothing, an estranged family member could inherit by default, or assets could be split in ways that don't reflect your relationships or intentions. Intestacy can also slow down the probate process and create friction among family members at an already difficult time.
Common Misconceptions
Many people believe a will avoids probate, the court process of administering an estate. It doesn't. A will simply guides that process; assets passing through a will still generally go through probate, which can take months and involves court oversight. People also sometimes believe a verbal promise or an outdated document found in a drawer carries legal weight. To be valid, a will generally must meet your state's specific requirements for signing and witnessing.
Keeping Your Will Current
A will isn't a "set it and forget it" document. Major life events, marriage, divorce, the birth of a child, the death of a beneficiary or executor, or a significant change in assets, are all good reasons to review and potentially update it. As a general rule, it makes sense to revisit your will every three to five years, even if nothing dramatic has changed, just to confirm it still reflects your wishes and current family situation.
Getting Started
If you don't yet have a will, this is the step to prioritize first. Gather a basic list of your assets, think through who you'd want as executor and guardian (if applicable), and consult an estate planning attorney to draft a document that meets your state's legal requirements. Even a straightforward will provides clarity and protection that intestacy simply cannot.
Next week, we'll look at beneficiary designations, an often-overlooked piece of your plan that can override what your will says entirely.
*This article is intended for general educational purposes only and does not constitute legal, tax, or financial advice. Estate planning involves personal circumstances that vary widely, so please consult a qualified attorney or financial professional before making decisions.
