Why You Need a Will

According to David Bach, author of SmartWomenFinishRich, 2 out of 3 Americans will die intestate, or without a will. When this happens, it is up to the court to make the important decisions of how a person's assets will be divided and who will take care of the underage children (if there are any). The person whose life is being divided no longer has any say in the values and priorities that others assign to his belongings. That is why it is so important to have a will, or at least a living trust.

A will is a legal document that allows an individual (the testator) to review her life and priorities. She gets to decide the arrangements of her funeral and burial and what is to be done with her possessions afterwards. In addition, if she has a child, it is through her will that her children are cared for, both through the naming of a guardian and by setting up ways to continue care for the child financially.

Not all property is designated by a will. Life insurance, for example, is paid to the stated policy beneficiary, no matter what the will says. And property owned jointly would automatically go to the joint owner(s). However, pretty much everything else does get divided by what a testator states in her will.

After the testator dies, the will goes to probate, which is the court process by which the will is reviewed and executed. It is the responsibility of the probate court to determine if the will is valid and to work with the will's executor (or to establish one, if the will does not or the person chosen is unable or unwilling to take on the responsibility) to close out the accounts, pay the bills, and manage the estate. Once the will is out of probate, it is up to the executor to complete the necessary tasks-closing accounts, selling property (if needed), paying bills, and dividing up the property. For this, the executor often gets a small percentage of the estate for a fee to compensate for his time (however, as this is taxable income, many couples who make their surviving spouse executor waive the executor fee, because the estate they receive will not be taxed in the same way). Probate often takes 6 months to 2 years, but it can also take longer.