It’s a simple answer to a complex issue. What kind of a will, how complicated it needs to be, what needs to be included in it, and what you want it to accomplish with it will vary from person to person. Regardless of your age or the size of your estate, it’s always a smart idea to have a legally valid and up-to-date will. And if you have minor children, it’s critical, because your will is the only legal way you can name a guardian for them. In the absence of a will, a court will decide who will take care of your young children and their property if the other parent is unavailable or unfit. You’ve worked hard your entire life, making critical decisions about important matters all along the way—why leave some of the biggest decisions in the impersonal hands of the courts? 

In its simplest form, a will is a legal document that determines how your money, property, and personal belongings will be distributed after your death, as well as who will care for your children. If you die without a will, state law (called intestacy statutes) will dictate how those matters are handled. Without a will stating otherwise, the state will distribute your property to your spouse and children or other blood relatives, or to the state’s coffers if you have no relatives. This may not be what you had in mind. Intestacy also includes the possibility that your estate will wind up paying more taxes than might otherwise be necessary.

Having a valid will allows you to leave your possessions to anyone you want—your spouse, children, relatives, friends, a charity, a trust, your alma mater, or anyone else (with certain exceptions: for example, you can’t leave property to your pets). The law also protects surviving spouses from being left with nothing, so there are some restrictions on how you can distribute your property. Generally, though, your will can spell out who gets the family jewelry, the antiques, the house in the country, and your baseball card collection. If it’s important to you, put it in your will.

If you have a life partner but aren’t legally married, a will is essential to make sure that your partner gets what you intend from your estate. Without a will, your partner will likely be excluded in the state’s decisions. If you and your partner own property, cars, or other big-ticket items together, make sure you own them as joint tenants with rights of survivorship. That way, the property automatically passes 100 percent to the survivor when one of you dies.

To be valid, a will generally needs to be in writing, signed by a person of sound mind, and witnessed by two or three competent people who are not beneficiaries of the will. The rules vary somewhat from state to state; an attorney can tell you what your state’s requirements are. And while you don’t have to have an attorney draw up your will, consulting with an attorney can ensure that your will accomplishes what you intend. Keep your will in a safe, accessible place and make sure that your executor knows where it is.

Your executor is the person you designate to act as your legal representative after your death. Some people name their spouse or an adult child to fill this role; others choose their attorney or other personal advisor. An executor’s responsibilities include a variety of estate settlement tasks, such as:

• Locating your will
• Paying your creditors
• Paying any taxes owed by your estate
• Distributing your assets

Being an executor is a big job (for which your estate should expect to pay a fee), so choose wisely and make sure your chosen executor accepts the responsibility.

If you have young children, your will should name a legal guardian for them in case something happens to both you and your spouse. You can name a personal, or custodial guardian, who takes personal custody of your children, and a property guardian, who manages the children’s assets until they reach the age of majority. This can be the same person or different people—a relative, a trusted friend—and although the probate court will have final approval, courts will usually approve your choice unless there are compelling reasons not to. Be sure to discuss your wishes with the people you choose to make sure they’re up for these important tasks.

Your will can help minimize taxes, too. Unless you specify otherwise, state law will generally decide how estate taxes and other expenses are divided among your beneficiaries. Your will can provide that those taxes and expenses are paid from your residuary estate, or it can specify what assets should be used (or sold) to pay those costs. This is important because estate taxes are due nine months after the date of death. Your estate may still be tied up in probate, but your heirs will owe estate tax on property they haven’t received yet, forcing them to come up the cash to pay the tax bill.

If you leave your entire estate to your spouse (and your spouse is a U.S. citizen), none of your property will be taxable at your death because it’s covered under the unlimited marital deduction rules (the estate tax burden shifts to your spouse’s estate). Estate tax is also not assessed on any property that you leave to a tax-exempt charity.

Keep in mind that assets disposed of through a will are subject to probate. Defined simply, probate is the legal process for handling someone’s assets when they die. Probate is neither cheap nor quick. The process can tie up property for months—sometimes even a year or more. The cost of probate may be set by state law or by practice and custom in your community, and can include appraisal costs, executor’s fees, court costs, the costs for a type of insurance policy known as a surety bond, legal fees, and accounting fees. When you add it all up, probate can cost from 3 percent to 7 percent of the total estate value. And if your estate includes property in more than one state, it may be subject to separate probate proceeding in all applicable states.

Not all aspects of your estate may need to go through probate. Any assets held in a living trust are not subject to probate. If you die without a trust or a will, probate is necessary to determine who is legally entitled to your estate. Reducing the amount of your estate that is subject to probate can ensure that your heirs receive your gifts sooner and with less cost and hassle than would be required if probate was required for your entire estate.

For a broader discussion of the role of wills, trusts, and other financial tools in estate planning, see the article titled An Introduction to Estate Planning or take the online course called Estate Planning. Consult your attorney or financial professional to see what makes sense for your situation.