Why do I need a will if I don’t have a lot of money?
- Gonzalez & Polanco LLC
- Sep 22, 2024
- 5 min read
Updated: Nov 4, 2024
Many people overlook the importance of having a will, especially if they believe they don't have significant wealth or assets. However, a will is much more than a tool for the wealthy; it's a document that protects your interests and those of your loved ones, regardless of your financial status.
A will is your voice after you pass away. It’s more than just a list of who gets what; it’s your opportunity to ensure that your loved ones are cared for in a way that aligns with your values. Through a will, you can designate guardians for your children, ensuring they are cared for by people you trust, in an environment you approve of, should something happen to you.
Why does everyone need a will?
A will is a legal document where you can express your wishes about how your assets should be handled after you pass away. There are several reasons why having one benefits everyone:
Control over your belongings. No matter the size, everyone has assets (whether it's personal items, a small savings account, or digital assets).
Care for children and pets. A will lets you appoint a guardian to care for them in your absence, ensuring they’re raised with the values, support, and parenting style you trust.
Ease the legal process. Dying without a will, also called dying “intestate,” allows state laws to decide how your assets are distributed, which can be contrary to your wishes and stressful for your family.
What happens If you don't have a will?
Without a will, you have no control over how your assets are distributed. The laws of the state will dictate who gets what, and this might not align with your personal desires or the needs of your dependents. For instance, without a will, you can't choose to leave a portion of your estate to a friend or a charity. Instead, your assets will likely go directly to your closest legal relatives as regulated by the laws of the state in which you reside.
Considerations beyond money
Wills aren't just about money. They can include instructions for your digital legacy, such as social media profiles or digital photos, ensuring they're handled according to your wishes. Wills can also address personal belongings with sentimental value, like family heirlooms, letters, or cherished collections. Overall, creating a will ensures that your wishes are known and respected, reduces potential conflicts among your loved ones, and makes the legal processes following your death as smooth as possible.
When and how to create a will?
When to create your will?
It's never too early to think about creating a will, especially if you have assets, debts, or dependents. Here are a few life events that often prompt individuals to consider writing a will:
Acquiring assets – This includes buying real estate, starting a business, or receiving an inheritance.
Marriage or divorce – These significant life changes can impact your plans for asset distribution.
Having children – Naming a guardian for your children can only be done through a will.
Retirement – A time that often prompts reflection on legacy and asset distribution.
How to prepare and create a will?
To start, consult with a qualified estate planning attorney who understands New Jersey’s legal requirements. This professional will guide you through each step, ensuring your will complies with state laws and is tailored to your specific needs.
Inventory your debts and list your assets – Include real estate, bank accounts, personal property, and any other significant assets.
Determine your beneficiaries – Decide who will inherit your assets. You can specify family members, friends, or charities. Be precise to avoid future disputes.
Appoint key roles:
An executor to manage the administration of your estate after your passing.
A guardian to care for your children.
A trustee, if needed, to manage assets for minors or adults with special needs.
Work with your attorney to draft your will – Your attorney will prepare the document based on your choices for asset distribution, beneficiaries, and appointed roles.
Sign your will – New Jersey law requires your will to be signed in the presence of two witnesses, who must also sign. To prevent conflicts of interest, avoid selecting beneficiaries as witnesses.
Store your will securely – Keep your will in a safe location and inform your executor and a trusted family member where it can be found.
Frequently asked questions
What are some reasons I might need to update my will?
Significant life changes like the death of a beneficiary, marriage, divorce, the birth of a child, or changes in the value of your assets are all reasons to review and potentially update your will. It's also wise to review your will if there's been a change in your executor or if you simply change your mind about how you want your estate handled.
How do I change my will in New Jersey?
To change your will, it's advisable to create a new will or a codicil (an amendment to your will). Do not make handwritten notes on your original will as these changes are not legally valid. Instead, work with an attorney to ensure the changes are legally binding and reflect your current wishes.
How can I revoke my will?
To revoke your will, the safest approach is to physically destroy the original document and any copies, then create a new will. It’s best not to revoke your existing will until a new one is ready to take its place; otherwise, your estate may be distributed according to your state’s intestacy laws instead of your intended wishes.
Will my New Jersey will still be valid if I move to another state?
While a will that is valid in New Jersey is typically recognized in other states, it's a good idea to have it reviewed by a legal professional in the new state to ensure compliance with local laws.
Who is entitled to receive a copy of my will upon my death?
The executor or personal representative of your estate is entitled to a copy of your will, as are any beneficiaries named within it. Additionally, if a trust is involved or the estate is large enough to be taxable, other parties such as trustees or tax authorities may also need a copy.
Can I disinherit a family member?
Yes, you can disinherit someone in New Jersey, but it's very important to explicitly state this in the will to avoid potential legal challenges.
How often should I update my will?
Review and possibly update your will every few years or after significant life events like marriage, divorce, the birth of a child, or the acquisition of significant assets.
Summary
Creating a will is essential, not just for those with significant assets, but for everyone. It ensures that your wishes regarding the distribution of your assets, guardianship of your children, and personal directives are clearly defined and legally upheld. A will safeguards your legacy, providing peace of mind for you and your loved ones while helping prevent potential disputes and complications.
At Gonzalez & Polanco, LLC, Attorneys at Law, our experienced team has nearly three decades of expertise in estate planning and wills. We provide tailored legal services to meet the specific needs of each client, ensuring that all aspects of your estate planning are handled with care and in compliance with New Jersey laws.
Whether you're drafting your first will or updating an existing one, our bilingual team is ready to assist you. To discuss your needs and how we can help secure your legacy, contact us at 732-442-2500 or schedule a consultation on our website.
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