Why You Need to Make a Will

If you have a document prepared, things will be a lot simpler for your friends, loved ones and charities.

By Peter McDougall July 21, 2008

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Every American adult should have a last will and testament -- but less than half of us do, according to a survey conducted last year by Harris Interactive on behalf of Lawyers.com.

Preparing a will isn't all that complicated or costly, but if you die without one, less of your money can end up going to your loved ones.

A will is a legal document that allows you to distribute your property as you see fit. If you die without a will -- referred to as dying intestate -- the state in which you reside gets to distribute your estate according to its own laws regarding who gets what.

Find the particulars of the probate laws in your state at Cornell University Law School's Web site.

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Most states also have statutes that require minimum levels of support for a spouse and, in some cases, children. But the will allows you to:

divide up your property as you see fit (within the limitations mentioned above);
appoint an executor -- the person or company who will see to it that everything happens the way you wanted it to, and deal with any taxes incurred in the process of settling your estate;
provide for individuals who wouldn't otherwise be covered by the state's probate laws, such as a friend or caregiver;
make contributions to charities or churches;
designate a guardian for your minor children.

Setting up a will is a fairly straightforward process. While a number of online resources allow you to set one up yourself, it may be in your best interest to seek the help of a professional. That way, you can avoid the costs associated with rewriting or clarifying a poorly drafted will or one that cannot be executed.

After all, the longer it takes to sort things out after your death, the higher the legal fees, leaving less of your money to distribute to your loved ones.

If you have a relatively straightforward estate, you may only need the services of a certified attorney who specializes in trusts and estate Law. You can ask friends and family for a reference, or check Lawyers.com for an attorney near you.

Interview prospective attorneys, asking for references and a fee schedule before agreeing to anything.

Your attorney may charge based on an hourly rate, or he or she may have an established flat fee for straightforward drafting of a will. The total cost will vary greatly depending on where you live, but you can expect something in the range of $500 to $800.

However, if you have a large estate (i.e., you have more than $1 million in assets, which is the threshold for estate taxes) or have complex financial affairs -- including various trusts, accounts and beneficiaries -- you should hire an attorney who specializes in estate planning.

In addition to collecting references from friends, family and colleagues, look for attorneys who belong to the American College of Trust and Estate Counsel. You can search the ACTEC Web site for an ACTEC fellow near you.