Frugal Friday

Making a Will

I know this may not seem like a way to save money, but let me explain. Have you ever thought about what would happen if you were to pass away without a valid will? This topic usually becomes more important as children enter our families, but it is important whether you have children or not.

What happens if I die without a will?

When this happens, your belongings are distributed to your "heirs," as defined by your state’s law, and in shares pursuant to your state’s law. Basically, the state will decide who gets your property, without any regard as to your feelings toward family members, nor any special relationships you may have formed outside of your family. The law assumes, sometimes incorrectly, that you would have devised everything to your family. You have no control over the disposition of your property, so if you care about who owns your property, have a will prepared before you die. Also, if your will is invalid or if you don’t dispose of all of your property under your will, and you have no residuary clause, then the undisposed-of property will pass under dying without a valid will.

~ from Direct Law

Who would receive my property and assets if I die without a will?

Each state has it's own laws regarding this subject. Here's an example of what this may look like if you should die without a will.

• If there is a surviving spouse and no descendants, then your surviving spouse takes the entire estate.
• If there are descendants but no surviving spouse, then your descendants take the entire estate.
• If there are descendants and a surviving spouse, then they will share the estate (usually one-half to your spouse and the other one-half is divided among your descendants).
• If there is no surviving spouse or descendants, then your parents take the estate.
• If there are no parents, then your siblings and their descendants take the estate.
• If there are no siblings or their descendants, then your grandparents and their descendants take the estate.
• If there are no grandparents or their descendants, then your estate goes to the state
  

~from Estate Plan Center

Do I need a will to appoint guardianship for my children?

Yes. For us this was the reason we felt so strongly about creating a will. If you have little ones

this will be the determining factor in who has guardianship if you should pass away. A guardian is legally responsible for the child's physical care, health, education, and welfare until he or she reaches 18 years of age. This will include providing basic needs such as food, clothing, shelter, health care decisions and education choices. Remember that choosing a guardian who will raise your child with the same morals and beliefs you see as important is critical.

It has also been suggested that you appoint an alternate choice for guardianship in case your first choice is unwilling or unable to serve. Always check with who you choose first to make sure they understand what is involved and if they feel comfortable with the role. Something to also remember is that as times goes by you may need to change who you appoint. Relationships and commitments change over time and you should not feel bad for making the best choice for your children. When we made our decisions it was with lots of prayer.

Some questions to ask before choosing a guardian:

*Is the prospective guardian old enough? (They must be at least 18 years old)
*Does your choice have a genuine concern for your children's welfare?
*Is your choice physically able to handle the job?
*Does he or she have the time?
*Does he or she have children of an age close to that of your children?
*Does your candidate share your moral and religious beliefs?
*Would your children have to move?
*Will your choice be family or friends?
*Do you have the finances arranged?

How do I create a valid will?

There are several ways you can go about this process. But, because this is Frugal Friday I will try to help you save as much money as possible.

1) Lawyer - most lawyers charge by the hour and it can range anywhere from $275-$550. This option may be your first choice if you have the need for establishing a trust and own a large amount of properties, etc.

2) Software programs - There are several out there, but the one that I have used and would suggest is Quicken Will Maker ($37.99 or if you buy Turbo Tax this season you may get a free copy). These programs are so easy to use and it only takes 30-45 minutes to complete the process.

3) Online Services - Again there are several out there, but the one that I have personally looked into is LegalZoom.com ($69 - $119 depending on the package you purchase).

With all these methods you must sign the will and in most states it should be done in front of a notary public to make it a valid copy.

I hope this information can help those of you who may have
had some questions about making a will and got you thinking
about the importance of having one in place as soon as possible.