Do you have a will? Here are 5 reasons why you should make the effort

For any person 18 years or older — even if all you own is a tennis racquet and a pair of sneakers — you need a will.

Why? It is a responsible act for a person to put all of their final wishes into a document that meets the standards of the law in the state of their residence.

In simple terms: Every person who is of age and owns any assets at all needs a legal will.

The hard truth is that all states have written a will for you in the event you fail to do so. All states have laws that prescribe what happens to your belongings after your death. There might be an instance where the state-written will leaves everything just like you want it, but I have yet to see that in my more than 20 years of practice in the legal field.

In response to this truth, I want to encourage you to keep the state out of your affairs. Take the time to consider this most important task that more than 65% of people neglect.

5 solid reasons

Here are 5 solid reasons, though certainly not all the reasons, why every person of age should make drafting a will a top priority.

1. To appoint a guardian for your children.

If you have minor children, this is the most basic reason that you need a will. If both parents pass away at the same time and there is no will, minor children become, for all practical purposes, the responsibility of the state. As a parent, you want to avoid allowing the state to decide who should care for them.

This decision could be one of the easiest decisions you have to make, or it could be one of the main reasons why you might never get your planning completed. Some people know very quickly that there is only one real option for them to consider when selecting a guardian. Others may have seemingly no options or multiple equal options. Pray through the decision first. Ask the potential guardian(s) whether they agree to accept the responsibility.

Make this decision a priority to avoid major issues, possibly even years after the need arises.

2. To protect your business.

Making a will is a good way to pass your company to your heirs or the co-owners of your business. Statistics show that 70% of family-owned businesses do not make it past the first generation, and the main cause is failure to plan. An estate plan gives you the power to choose what will happen when you can no longer run your business.

Many questions arise when a small business owner is suddenly not around to carry on the operations of the business. For example, will your heirs continue the business, or do you want it sold? Would you rather non-family co-workers take over the business? Have tax implications been considered and planned properly? There are many decisions to be made in business succession and many documents that need to be drafted. A will is vitally important for the protection of a business.

3. To decide who receives your assets.

Remember what I said earlier about the tennis racquet and the sneakers? You may have someone specific in mind to receive these items after your passing, but unless you plan properly with a will, the chances are very slim that this will happen.

Your belongings

Most of us have much more than this as part of our estate. We have personal property items, but we also have real property, life insurance, retirement, investment accounts and cash. Whether it’s a family generational heirloom, a classic car or your savings, you should decide who receives your belongings after you die, not generic guidelines established by your state.

The state-determined rules might not meet your wishes and will never include provisions for those not related to you, like close friends. Make sure your loved ones get the assets you want them to receive.

4. To provide for a favorite charity.

Wills don’t have to be just for friends and family. Including a charity in your will is a great way to give back and make sure your assets are used for a good cause. This is at the very heart of our work at The Baptist Foundation of Alabama.

You can be assured that if you fail to prepare a will, no charity will get a gift from you, even if that is your desire. There are some really powerful tools that can be used to benefit charities and minimize taxes at the same time, and proper planning is essential to accomplish this.

5. To prevent unnecessary difficulties when times are difficult enough.

The final reason everyone should have a will is a more general but still important one. Having practiced law privately for 14 years and worked in the area of estate planning for more than 20 years, I can assure you that issues arise after someone dies that no one saw coming.

Losing someone is incredibly hard, and none of us want to spend those hard times arguing with lawyers and family members. Making a will keeps your loved ones from having to deal with extra burdens in a time of sadness.

Most people cannot think clearly in the midst of losing someone. When you are grieving, it’s harder to make major decisions, but somebody has to be in charge. This could cause problems if more than one person feels the responsibility lies with them.

Take action and take care of your responsibility, for your own sake and for those who depend on you.