Most people know they should have a will, but still, they do not. Let this serve as an important reminder that if you don't make a plan for your assets and liabilities, the state is going to decide what happens to it.
“If you just leave your family a pile of assets and liabilities to sort out, there's no telling what direction that conversation or that process is going to take,” says Nate Olansen.
As managing shareholder at Midgett Preti and Olansen, Olansen helps people prepare for the inevitable.
“I think for a lot of folks, it's really just trying to make life easier on the people that you leave behind,” he says.
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After a loved one dies, relationships can get messy especially if there is not a plan in place. Having a will can clear up confusion about your belongings and assets even if you think you don't have a lot.
“How do you want your assets divided? Do you want it to go in equal shares to your kids? Does one of your kids have a special need that we have to plan for? Do you not like your kids, and you just want to give it all to your brother?” says Olansen.
If you do not specify who will take ownership then in most states, including Virginia and North Carolina, your assets will be distributed to your closest relatives.
“In theory, if you're just doing a will, you could write it down on a piece of paper sign it, date it, and that's a perfectly valid will,” Olansen says. “The problem is you don't really know what it is you just wrote down. Maybe it's clear to you, or you think, in your mind, 'this is what I've done,' but maybe the legal effect of that document isn't what you intended."
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An attorney, like Olansen, can make sure everything is legally buttoned up. However, if you are looking for a cheaper option, look to FreeWill. It's a free online estate planning tool, funded by businesses and nonprofits, which helps people make a will step-by-step.
“Our company was not established to compete with lawyers. We don't practice law and we don't do estate planning. What we do is we provide a template that allows you to do your own estate planning, your own will,” says Chuck Borek, associate general counsel at FreeWill.
Borek added that it is surprising to see how many people don't have a plan.
“It’s estimated that anywhere from 70% to 80% or more of Americans don't have wills, and that's a real shame,” he said.
But according to Borek, just one dollar is enough to start planning a will.
“There’s a whole host of things like, you know, taking care of your pets and access to your digital assets — things like that have nothing to do with wealth or money at all,” he said.
A good rule of thumb is start planning before you need it.
This story was originally published by Erin Miller at Scripps News Norfolk.
