Why You Need a Will

Making a will is an important task that people tend to continually put off. If you have asked yourself, "Do I need a will?", the answer is a resounding yes. A valid, legal will is the only way to ensure your assets are distributed according to your wishes.

A will is a legal document that names your beneficiaries. These can be family members, friends, a domestic partner, or charitable organizations who will receive your assets as you direct. Your assets include everything you own: your home, property, car, money in the bank, insurance policies, shares, jewelry, pictures, furniture ... the list goes on. Making a will protects your assets, making certain they will be shared out in the way you want after you are gone.

Preparing a valid will

A valid will is one that has been accepted by a court and put into effect by a grant of probate. To be valid, your will must be:

In writing. It must be handwritten, typed, or printed.
Signed. Ideally your signature should be at the end of the will.
Witnessed. In some jurisdictions, two witnesses must be present when you sign your will or acknowledge it and they must sign it in your presence. However, they do not have to be present together at the time they sign.

If your will is not made in this manner it may not be enforceable; the court has the power to grant or not grant probate (confirm that the will is valid) and your property could be disposed of as if you had not made a will.

Consider the years of hard work it has taken you to build your assets (known as your "estate"). If you are thinking, "Why do I need a will? I'm young and healthy," remember that a will is about providing for the future of your loved ones. Dying without a will (dying "intestate") can be costly and stressful for your family at what is already a difficult time.

Ensure care for children and other dependents

It is essential to make a will if you are concerned about who will receive your assets and belongings after you die. It is especially important if you have a family or other dependents, as without a will, statutes will dictate how your assets will be distributed after your death and even who will look after your children if they are still minors. A will can be used to appoint a guardian to look after your children until they are old enough to look after themselves.

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Having a will gives you the opportunity to nominate an "executor"; that is, the person who will take charge of your affairs after your death. If you die without a will and have no family or relatives, then your estate will be forfeited to the government. But what about a charitable or religious trust that you may have supported all your life they may not benefit from your estate at all?

If you are living with a domestic partner but unmarried, without a valid will your partner may not receive any of your assets.

Without a will your assets will be frozen until an administrator is appointed. Not having a will can delay this process. Remember that anyone financially dependent on you will not have access to your income and capital and therefore have no income to live on until an administrator is appointed—regardless of their financial need.

The cost of a having a will prepared by a lawyer can vary depending on the complexity of it and the extent of your assets. The expense is normally minimal compared to the benefits your beneficiaries receive from you having a valid, legal will in place.

Checklist for drafting a will

The following are a list of the key issues to consider when drafting a will:

Beneficiaries

Who receives any real estate owned?
Who receives any personal property owned?
Who should get any assets not specifically mentioned?
What family members do you want to specifically disinherit?
What age does a beneficiary have to obtain before getting full custody or right to assets?
What happens if one or more of your intended beneficiaries does not survive you? Who gets their share of the assets?
Make sure to identify all assets and the location of all assets.

Guardianship of children

A guardian is the individual charged under a will to take care of your minor children.

Who will be the guardian under the will?
What compensation and reimbursements will the guardian receive?
What happens if the guardian dies or is unable or unwilling to serve as the guardian?

Executor

An executor is a personal representative appointed under a will to carry out the deceased's wishes and instructions under the will.

Who will be the executor under the will?
What compensation and reimbursements will the executor receive?
What happens if the executor dies or is unable or unwilling to serve as the guardian?

Debts

How will you provide for the payment of your debts?
Are there specific debts that a person receiving an asset will be subject to (e.g., a mortgage on a piece of property)?

Trusts

Should a trust be established for the benefit of minor children or other beneficiaries?
How long will the trust last?
Who will be the trustee administering the trust?
What compensation and reimbursements will the trustee receive?
What happens if the trustee dies or is unable or unwilling to serve as the trustee?

Special requests

Do you have special instructions regarding burial or cremation?
Do you want to pay for your burial expenses in advance?
Do you have special instructions as to how pets should be taken care of?
Should life insurance proceeds be treated in a special way? (note that the terms of the life insurance policy may govern this)

Legal details

Does the will have to be notarized?
Does the will have to be witnessed?
What individuals are allowed to be witnesses to the will?
Where should copies of the will be kept?
What is necessary to properly and legally amend the will?
Should you have a lawyer draft the will?

Taxes

What tax consequences are involved in disposition of assets?
How are estate taxes to be handled?
How will transfers to spouses be tax efficient?

A will provides peace of mind

"Why do I need a will?" The best answer is "peace of mind." One of the most important benefits of having a will is the peace of mind that comes from knowing that you have provided for the expeditious handling of your estate and the future of your loved ones. Executing a will is not only wise to protect your assets but will protect your loved ones from unnecessary burdens and legal hassles. Don't let the courts decide the distribution of your estate—make your wishes known with a will.