Do I Need a Will if I Don’t Own Much?

Though some people will have more material goods to distribute than others, wills are not just for millionaires. Anyone can — and should — write a will to ensure that whatever money or possessions they own will pass to their loved ones.

What Is a Will?

A will is essentially a set of instructions that outlines who should manage a deceased person's estate, called an executor, who should inherit the property, and who should care for minor children, among other provisions.

When someone dies with a valid will, the estate is "testate." The probate court makes sure that the executor distributes the property in the manner set out in the will. It is one of the most important estate planning documents, together with living trusts and powers of attorney.

Since a will distributes property belonging to a deceased person, it is important for the state to verify that the will was actually written by the deceased person.

For this reason, each state imposes certain security requirements that a person making a will must follow in order for the will to be valid. Some states require that two adults witness the signing of the will; others require that the person making the will sign in front of a notary. If you are not sure of the requirements in your state, seek legal advice before preparing one.

What Is Probate?

Probate is a court-supervised process where the executor (the person in charge of the estate) pays the bills of a deceased person and distributes the remaining property from their estate. A person's estate is made up of real property, personal property and any other assets they own when they die.

When someone dies with a valid will, the estate is called "testate," and a person termed the "executor" files the will with the probate court. The executor then shepherds the will through the probate process, gathering assets, paying debts, and distributing the remaining assets according to the terms of the will.

The probate process is different in each state. Some states offer a simplified process for smaller estates, but in others, probate can be time-consuming and expensive. Because of that, some people prefer to avoid probate by putting their assets into non-probate property during their lifetime.

Who Is the Executor?

An executor is a fiduciary who is under a solemn legal obligation to follow the instructions in your will. You can name a trusted individual as an executor in your will. If you don't, the court will appoint one.

If you do not have a will appointing an executor or personal representative, the court appoints an administrator who follows the intestacy laws.

When You Die Without a Will

If you die without a will, you die "intestate." The probate court has no instructions from you about who should get your property. Instead, it distributes the estate according to your state's laws on intestate succession.

Intestate succession, as defined by intestacy laws, sets out a list of family members who are in line to inherit money and assets from a decedent who dies without a will. Intestate succession refers to the order in which family members qualify to inherit. Generally, surviving spouses and children are on the top of the list, followed by increasingly distant relations.

When you die without a will, the court cannot distribute your estate to people you want because it does not know your wishes. Instead, your probate estate passes to these blood relatives, regardless of whether you like them or even know them.

Therefore, if you want your best friend to inherit your Volkswagen van, your neighbor of 30 years to get your vintage record collection or your stepkids to receive money for college tuition, you need to write a will.

What Doesn't Go In a Will

Not everything you own should be included in your will. Certain property won't pass under the will. This is called "non-probate" property since it does not go into the probate estate. Instead, this property transfers directly to the person you named as a beneficiary.

What kinds of property fit this description? Non-probate property includes life insurance policies and bank accounts with beneficiary designations, allowing you to name someone to take over the account when you die. Often retirement accounts permit beneficiary designations, and some savings accounts do as well.

Don't include property you own with somebody else in your will if the deed includes “right of survivorship." For example, in many states, community property real estate deeds as well as real property held in joint tenancy fall into this category. That means that when one of the owners dies, their share passes automatically to the other person or people on the deed.

Naming a Guardian for Your Minor Children

Anyone who has minor children has yet another reason to prepare a will. That's because the children are too young to make decisions for themselves and will require a legal guardian until they become adults.

Sometimes the other parent survives you and assumes responsibility for the children. If they are not available, your will is your opportunity to select a trusted adult to step in. Ask the potential guardian if they will serve before naming them.

Should You Make a Will?

Making a will is generally a good idea, regardless of the size of your estate. Nearly everyone has something to pass on to loved ones, whether it's a minor or significant asset. Writing a will is an easy way to make sure that it goes to the right place. To make a will you can consult an experienced estate planning attorney or even create your own will online.