More than half of American adults don't have a will. If you're one of them, your state decides what happens to your assets, your children, and your estate — not you.
When you die without a valid will, you die "intestate." Your state's intestacy laws then determine what happens to your assets — following a strict priority order: spouse, children, parents, siblings, extended family. The exact distribution varies by state, and it may be very different from what you intended.
Without a will, virtually all of your non-beneficiary-designated assets must pass through probate — a court-supervised process that typically takes 6–18 months and costs 2–5% of the gross estate value. During that time, your family has limited access to those assets.
If you have children, many states split your estate between your spouse and children according to a formula. Your spouse might receive one-third to one-half of the estate, with the remainder going to your children. If your children are minors, their share goes into a court-managed custodial account — not to your spouse to manage.
A basic will doesn't need to be complex. At minimum, it should name who inherits your assets, name an executor to handle your estate, name a guardian for minor children, and address any specific items that matter to you.
Beyond a will, review your beneficiary designations on every retirement account and life insurance policy. These designations override your will — keeping them current is one of the highest-value estate planning actions you can take.
Finally, make sure the right people can find your documents. A will your family doesn't know about is almost as bad as no will at all.
Most families with significant assets have never organized their estate in one place. Answer 7 quick questions and find out exactly where you stand — and what's putting your legacy at risk.
Do you have an up-to-date will?
Most people don't.
Can your family find your documents in an emergency?
Often the answer is no.
Do your advisors know each other?
Siloed advisors cost estates millions.