Watch how much should you put down on a home:
Interested in buying your first home, SDFCU offers many mortgage options including one for first-time homebuyers.
Here’s a myth we should bust right now: Wills are not just for the old and wealthy. Nearly everyone of legal age needs one. And if you have children, creating a will should be at the top of your ‘must-do” list if you don’t have one already. If you are of age and don’t already have a will, you owe it to yourself to create one.
What is a Will?
Simply put, a will is a legal document that tells the state (where you live) who you want your belongings to go to when you die. For those who are married, many states automatically make your spouse the heir. Unfortunately, if you and your spouse have children and die together (or become seriously injured or incapacitated in an accident) without a will, you’ll have no say in who becomes the legal guardian for your kids. Scary stuff, we know.
Certified financial planner Spenser Liszt sometimes catches his clients by surprise when he tells them everyone—for the most part—already has a will. “Your state of residence drafted one for you,” he says. This often leads to a conversation on whether you want to gamble on whether the government has your best interest in mind when deciding who inherits your estate and becomes a guardian for your children. “Everyone should execute a will regardless of age, wealth, occupation, or family situation,” Liszt says.
Here are a few things to keep in mind, he notes, on what can happen if you don’t draft will:
- Dying without a will means your estate will likely go through probate court.
- More of your information (including financial matters) becomes public.
- The government takes a cut.
- Your loved ones may be forced to grieve your death again in court.
- A stranger decides who your minor children will live with.
Low-Cost Options
Drafting a will does not have to cost a fortune or take weeks to complete. There are also numerous online options to build a will. Those resources include Trust & Will and Nolo.com.
Should You Use an Attorney?
Drafting documents through an estate planning attorney will ensure they are executed correctly. However, if you don’t want to pay for a lawyer to draft your will, you can create the document yourself using one of the resources mentioned above and then pay an attorney, perhaps just for an hour of their time, to review the paperwork. That could offer you a little more peace of mind than doing it yourself and tucking it away in a drawer.
We have partnered with Trust & Will to streamline the process of creating legally binding estate planning documents. SDFCU members enjoy 10% off any Trust & Will estate plan.
Tell a Friend
After creating a will, it’s important to let at least a few trusted friends and family members know about the document and its physical location. That way, if something were to happen to you, they would know exactly where to look.
