According to a recent Caring.com survey, only 24% of Americans have a will—a proportion that’s steadily declined since 2022. Alarmingly, the largest group of people lacking any estate planning documents are parents with children under 18. The most common reason for not having a will? “I haven’t gotten around to it,” answered by 43% of respondents. This post explores the importance of having a will as well as what happens if you die without one, how to create one, and much more.

What is a will?

A will, formally known as a “last will and testament,” is an important document ensuring an estate is settled per the deceased's wishes. More specifically, it outlines how to distribute assets and possessions after one's death.

Top reasons why you need a will

Some of the biggest advantages to having a will, which are many, include:

Streamlining probate

One key benefit of having a will is the ability to streamline the probate process used to administer a person's estate after his or her death. This legal process often tasks a court with verifying the authenticity of your will, appointing an executor (the individual(s) you designate to carry out your wishes), and ensuring taxes and debts are settled and that the correct parties receive your property and possessions.

Ensuring proper care for minor or special needs children

If you have minor children (under the age of 18), creating a will allows you to legally appoint a guardian for them should both you and your spouse pass away before they reach adulthood. The court would choose a guardian in the absence of this document, possibly someone you wouldn’t want raising your children.

If your child has special needs, meanwhile, it's important to ensure future caregivers understand and honor your wishes for his/her care. Many experts recommend creating a "letter of intent" to accompany your will, a document outlining your child's daily routine and favorite activities to help caregivers provide the best quality of life and ensure there’s no need to learn by trial and error. The letter of intent can also identify necessary doctors, services, and resources your child may require.

Minimizing or avoiding family disputes

Having a will can help minimize or (ideally) eliminate potential disputes among family members. In the absence of one, the court and your family may be forced to make assumptions about how you want your assets distributed: leading to disagreements, especially if you have children from a previous marriage or if you and your current partner aren’t married. Such situations can quickly become complicated, resulting in conflicts that may last a lifetime.

Potentially reducing estate taxes

If you plan to leave money to charity, including a bequest in your will can help reduce estate taxes (provided it’s set up correctly) as charitable gifts are excluded from your taxable estate. A bequest is simply a line item stating the amount of money, specific charity, and the purpose for which you'd like the charity to use the funds. You can also specify "general purposes" so the charity can allocate the funds how it sees fit.

What happens if you die without a will?

Passing away without a will—known as “dying intestate”—can trigger several complications. This forces the court to make decisions on your behalf, for example, which often includes freezing your assets until an executor is appointed and deciding how to divide them among family members (something that might not align with your own personal wishes).

The probate process is also sometimes prolonged in intestate cases, especially when significant assets are involved. It’s not unusual for months (or even years!) to elapse before any money, property, or belongings are distributed to heirs. While these lengthy processes are perhaps relatively rare due to the sheer size of these estates, they remind us of famous (and seemingly endless) probate cases involving celebrities such as Prince and Aretha Franklin.

When you should make a will

If you’re over 18 years old and possess any assets—whether a bank account, used car, or even a collection of baseball cards—it's important to consider creating a will. Why? Because the reality is that everyone eventually passes away (hopefully many years down the road), and such preparations can make a significant difference by ensuring assets are transferred smoothly and efficiently.

When you should update your will

Several important triggers should prompt you to update your will including significant life changes, changes to your bank and investment accounts, and major purchases.

Life-changing events include getting married or divorced, calling on you to update your will and account beneficiaries accordingly. If you have a child, meanwhile, it's key to appoint a guardian in your will; once your child becomes a legal adult, you should update your will again so he/she can act as a beneficiary. Should your spouse pass away before you, you’ll need to revisit key aspects such as guardianship, beneficiaries, and the designation of a new executor.

Major purchases (e.g., acquiring a home, car, or boat) also warrant will amendments as do financial changes such as opening or closing bank accounts. You don’t want to leave a closed account to someone in your will, for example.

Lastly, if you relocate to a different state, ensure your current will complies with the laws of the same.

Common will myths

Here are some common misconceptions when it comes to wills:

Wills are for the elderly

Many people believe only the elderly need a will, which is by no means true. In most states, individuals as young as age 18 can create a legally valid will.

Only wealthy people need wills

It’s another misconception that wills are only for the wealthy. If you have a bank account, investments, a car, a home, jewelry, collectibles, furniture, and/or an insurance policy, you have assets. Regardless of how modest your estate is, it’s important to plan for its distribution after your death.

My spouse will inherit everything when I die

While it’s true that some assets owned jointly with a spouse transfer smoothly, this isn’t always the case—especially if you have children. State laws, which determine how assets are distributed in the absence of a will, can vary significantly from state to state.

My debts will go away when I die

Unfortunately, debts don’t simply go away after one’s passing. Instead, your estate is responsible for settling them; if your accounts are lacking in funds, some assets may need to be sold to cover your debts (a decision left to the executor and the court in the absence of a will).

How to create a will

While many types of wills are available, the most common are simple wills (also known as “last wills and testaments”), testamentary trust wills, joint wills, and living wills. A simple will is typically sufficient for the average person.

After choosing the type of will to best suit your needs, consider what it should include—a process that often involves gathering and organizing information about your assets and debts, identifying who will receive your assets (whether individuals or charities), appointing a guardian for any minor children, and selecting your executor(s).

As mentioned earlier, you have the option to write your own will, use an online service to create one, or hire an estate attorney (often recommended).

Additional estate-planning tools to consider

Remember, a will is just one part of the estate-planning process used to create a blueprint for the preservation, management, and distribution of assets in the event of your death and/or mental incapacitation. It’s thus important to understand related limitations such as how beneficiaries on life insurance policies and retirement accounts generally supersede a will, with additional estate-planning tools therefore necessary to help achieve your objectives; some of the most common estate planning tools include a living trust, power of attorney, life insurance, living wills, and beneficiary designations.

In sum: final thoughts regarding why you need a will

Although it’s not fun to think about, the simple fact is that none of us will live forever. In creating a will, you wield better control over your legacy by ensuring assets are distributed how you intend and that any minor children are properly tended to all while minimizing—or even eliminating—potential friction between family members.

Questions about wills or estate planning? Schedule a FREE discovery call with one of our CFP® professionals to get them answered.

FAQs

While state laws vary, a will is generally valid if the testator (the person who owns it) is of sound mind—meaning of legal age and conscious of his/her actions. Furthermore, the will must be signed by the testator in the presence of at least two witnesses (age 18 or older). While pretty much all states don’t require will notarization, doing so can aid the probate process.
Yes, provided you follow the steps outlined above. Keep in mind, however, that not all jurisdictions recognize online wills so be sure to check the specific laws of your state.
While it's generally advisable to have an attorney draft your will, you can also create your own as all U.S. states allow this. Several online services are available to help in this regard, often for a fee. (Note: Louisiana is the only state that mandates will notarization, with no state requiring courthouse filing for a will to be valid although doing so is often helpful.)

What is a Will, What Does it Include, and Why Do You Need One?