Wills: A Primer
Even though most Americans know, intellectually, that writing a will (or setting up a living trust) is a display of love, many people can’t bring themselves to do it. A 2020 Gallup poll found that less than half of U.S. adults, 46 percent, have a will that lays out exactly how they want their assets to be distributed or managed when they die. These numbers are nothing new. Since 1990, the percentages haven’t been much different in other Gallup surveys.
On one hand, it's easy to understand: It’s not an enjoyable undertaking. According to Texas-based financial coach Craig Dacy, “Many Americans avoid setting up a will because they simply don’t want to think about their deaths.”
But the reality is that creating a will is an important way to show how much you care for those you love. Importantly, a well-done will can spare your nearest and dearest much stress, time, and potential conflict.
Why You Need a Will
Regardless of your asset pool, you require a will or a living trust. Even though people most commonly think of a will as an instrument to allocate money and property, there’s much more to consider. For example, according to freewill.com, the document also designates critical decisions, such as naming a caretaker for your beloved pet, designating a guardian for children younger than 18, and spelling out your preferences regarding charitable donations.
According to ramseysolutions.com, the website of financial guru Dave Ramsey, the three leading reasons people say they don’t have wills are:
- They don’t have time to make one.
- They don’t need one at their current stage of life.
- They can’t afford one.
Ramsey’s website article, “Do I Need a Will?" debunks these three rationales for not writing one. The article also lists the four pieces of information the document must include:
- The naming of an executor, an individual who will carefully manage the end-of-life business as your requests dictate. Sometimes a lawyer is hired, but most choose an adult child, another trusted family member, or a dear friend.
- The designation of beneficiaries, those who receive money or goods through the will.
- Specifics about gifts to be distributed. If your favorite piece of crystal is intended for a beloved niece, spell that out clearly and describe the item in detail.
- Naming the guardians for minor children.
Living Trusts
Some people prefer the alternative of a living trust to a will. Both are essential estate planning tools. Here’s the main difference between the two documents, according to Metropolitan Life Insurance: Wills and living trusts differ in what they can include and how they’re managed. For example, an important consideration for people with serious chronic diseases, including Alzheimer’s, is that a trust allows additional controls and designees to protect one’s assets if an individual becomes incapacitated.
According to the National Council on Aging, a will is sufficient for most individuals. However, they offer this guideline: You may choose a living trust, rather than a basic will, to keep an estate out of probate. The laws governing these essential documents vary from state to state. Here’s some important information about how to avoid probate, specific to West Virginia.
Resources
No doubt about it, wills can be a complex topic. Here are a few sources that can ease the process.
- Suzeorman.com. If you’re unfamiliar with her, Orman is a financial advisor, author, and podcast host.
- “Your Life, Your Money.” It’s a PBS program that delivers sound, basic financial advice.
- Wills and Trust for Dummies.This book is a guide to key aspects of estate-planning basics.
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