Brand New Dad UK » Money » Blue Collar Dollar » Where there is a Will there is a Way

About the Author Paul Petillo is the Founder and Editor of BlueCollarDollar.com, and the author of Building Wealth in a Paycheck-to-Paycheck World. The information found there provides you with insightful looks into the mechanisms of finance, the inner workings of your investments, and the outcomes that you are looking for either as a seasoned investor or a novice. Visit His Website Buy His Book »

This article is copyright, Paul Petillo (2005)

There are other reasons to create a will above and beyond the simple financial benefits of having one. Although I will get to those in a minute, I want to first discuss some of the more psychological reasons to having this important legal document and why you should do it now.

George Carlin, the irreverent comedian once said, "we buy a house and fill it with stuff. When we have too much stuff, we move to a bigger house." But to many of us, that stuff has value beyond the financial and those possessions, no matter how mundane or ordinary, do carry a certain value that may not be monetary. A will can, as they are fond of saying, provide peace of mind for the one writing the will and greatly help your loved ones.

As a legal document, a will can designate how those possessions are divided and to whom. These details should be discussed openly with spouses and recipients of these inheritances. While there are personal bridges to cross when writing this document - the most important, dealing with your own and eventual mortality - they can also be very helpful to those that survive your passing.

The first step is naming or finding an executor. This person, whether it be a relative or close friend, should be aware of their responsibility and be able to carry out your wishes in a difficult time. This person will deal with often fractured families and grieving survivors. Having someone level-headed and comfortable with their responsibilities will make it easier for everyone concerned,.

This person should be made aware in advance of the appointment and any instructions should be put in writing. While this is not necessary, it is often easier for the executor to execute your wishes if they have some sort of reference document. The key is to create this appointment while you are still in good health and able to think things through. Most importantly, be specific.

For parents of young children, this might also be the person(s) you want to raise your offspring, provide for them the way you would, and perhaps give them the same set of values that you have. For people who have grown children, the executor should be someone close and generally amiable to other family members. You would be surprised at the reactions of those close to you, many of whom may feel slighted or misinterpret your wishes. Either way, the executor should be a strong willed person who is able to follow your requests and deal with the financial underpinnings of your estate.

Discussing these things with your children, especially if you are older, becomes incredibly important. Most folks find the conversation awkward and difficult. It means coming to grips with your own mortality as well as forcing your children to understand that your death is inevitable.

This becomes doubly important when only one parent is writing the will. If you are an only child, suggest (strongly) that their house be placed in a trust. This will allow the house to pass into your name without the usual wait for probate. Probate is essentially the legal proceeding that divides the property based on the presence of the will. If there is no will, the probate judge will need to follow the law of the state, sometimes tying assets up for months awhile creditors are contacted and the estate is settled. But that is worse case scenario.

In many cases, the cost of simple trust and lawyer's fees involved are a small fraction of the costs of probate, which in many states can amount to 3-5% of the home's worth.

There are a staggering amount of folks that currently are without a will. According to a survey that was conducted in 2003 by FindLaw.com, 57% of households with something to lose should a death occur, have no will or directions for their heirs.

A will, although a wonderful document, often does not give all of the financial details of a person's life. The executor or the children should also know where all of the bank statements, tax returns, investments and insurance policies as well as any other pertinent financial documents.

The best thing you can do is to create a list of assets, directions on how you want your worldly goods divided, and even more importantly, how you want your medical procedures to be handled in the case of complete incapacitation.

But don't wait. If you have property or someone who depends on you, find an attorney and make a will today.

Latest Blue Collar Dollar Columns

» Do You Need a Financial Planner?
» Property Values and Replacement Costs: Have you updated your Insurance lately?
» The Money Mindset: How to be a Big Business Thinker on a Small Business Budget
» Kids and Money
» Disaster Planning - Making a Plan You May Never Use
» Understanding Your Investments After You are Gone
» Free Credit Reports: A Consumer Report Alert
» A Look at Your Credit
» Partnerships: A Look at Women and Finance
» Do You IRA? A Look at the Program Thirty Years Later
» Where there is a Will there is a Way