What Is a Will?

What Is a Will?

Let me explain what a will really is. A will, which you might also hear called a last will and testament, is essentially a legally binding statement where you declare how you want your property and assets handled after you pass away.

But it's not just about assets. You can use your will for other important things too, like suggesting a guardian for any minor children who survive you, or laying out your wishes for your remains and funeral arrangements.

Key Takeaways

When you write a will, you're making sure your family and friends get your assets exactly as you intend, without extra headaches. Think of it as a clear declaration of your plans, including a straightforward rundown of everything you own. You can also use it to safeguard your minor children or other dependents. Remember, your will needs to be signed, dated, and witnessed by typically two adults who aren't beneficiaries. And keep in mind that any beneficiaries you've named directly in your financial accounts will take precedence over what's in your will.

Understanding a Will

A will is a core part of estate planning. It documents your wishes so they're followed, helps your heirs get their inheritance smoothly, and can stop arguments among family over your property.

If you die without one, the state steps in to decide how your stuff is divided, and it might even claim some as state property.

Format of a Will

Wills don't have a one-size-fits-all format, but most stick to a standard structure. It usually starts with you stating that you're of legal age and creating this will freely, without any pressure.

This opening also confirms you're mentally sound when making it, identifies you clearly, and says this will cancels out any earlier ones.

The Executor's Job

In your will, you'll name an executor—sometimes called a personal representative—to manage selling off and distributing your assets as you specified. This person also handles any debts and taxes owed by your estate.

Your executor could be a lawyer, a financial pro, or just someone you trust to be responsible. They might get a fair fee for their work, as set by state rules.

Insurance Policies and Financial Accounts

After picking an executor and any guardians for kids, your will should address insurance policies with named beneficiaries. Know that wills don't override the beneficiary setups in life insurance, retirement funds, or transfer-on-death accounts.

This part might also cover joint bank accounts and co-owned property.

Important Note on Beneficiaries

Double-check that the beneficiaries on your financial and insurance accounts match those in your will. If they don't, the account designations win out over your will. Of course, you might intentionally want to direct certain assets to different people outside the will.

Naming Beneficiaries

The bequest section lists who gets what from your property and assets, excluding the insurance, accounts, and joint stuff mentioned before. Name everyone clearly to avoid legal fights that could drag out probate and rack up costs.

Interment Details

You can include your funeral and burial preferences in the will. If you've already arranged for a plot or expenses, spell that out here.

State Requirements for Wills

Most states demand that your will is witnessed by two people and signed and dated by you at the end. Some allow holographic wills, which are handwritten.

After you die, the will goes to the probate court in your county or city. Probate can be fast or slow based on state laws, estate complexity, and any challenges. A solid will keeps things efficient.

Do I Need a Lawyer to Make a Will?

You don't always need a lawyer—you can use affordable forms from sites like LegalZoom or Quicken WillMaker & Trust, or even buy one at a stationery store. This works if your finances are simple and your family setup is straightforward, like having just one child.

But if you have big assets like a house, accounts, insurance, or valuable property, get an attorney's help. They'll ask the key questions about what you own and what you want, and they'll know your state's probate process.

How Many Americans Have No Will?

As of 2024, only 32% of Americans have a will. Among those without, 40% say it's because they don't have enough assets.

What Documents Do I Need to Write My Will?

Whether you're doing it solo or with a lawyer, gather plenty of paperwork. You need to prove who you are with things like your birth certificate and marriage license if applicable.

Then list all your assets: bank and investment account numbers, mortgage papers, property deeds, and contact info for your lawyers, accountants, or financial advisors.

The Bottom Line

Creating your will might be the final act of kindness for your loved ones. Dying without one—called dying intestate—leaves them with a tangle to sort out, and your wishes might not happen as you planned.