Get a Will

A will is not something you’d brag about at a company picnic. A new car, a new iPhone, a new plasma TV—that’s fun stuff. A will isn’t a glamorous item. Who enjoys talking about death? However, of all the insignificant crap that dominates attention, taking care of your family if anything, god forbid, happens to you is of paramount importance.

If you have young kids and not much net worth, you don’t have to go crazy with estate planning. Here, in NY, “not much” amounts to half a million dollars. The main concern to your young family will probably be designating legal guardians for your kids in case of a catastrophic event. Otherwise the state will “take care” of it, and it will do so at its own slow pace.

This discussion applies mainly to my readers in the US because I have no idea how wills are handled elsewhere.

Do-it-yourself kit

There are various ways to secure a will. To go it alone, there are Nolo Press books. Then there’s Quicken Willmaker. I bought it thinking I can figure it out, but take it from me: Willmaker sucks! It doesn’t help, it’s too rigid, and yesterday’s version may as well be outdated today. It’s a sloppy product and a waste of money.

Find a lawyer

Your best bet is to find a local lawyer who does estate planning. Now, I’m in no position to dispense legal advice, and I’m sure the law varies from state to state (especially in Louisiana with its French laws).

Lawyer services aren’t cheap, but they do wills all the time and may have a flat-rate “package”: a will, a power-of-attorney, and a healthcare proxy. I can speak for the state of New York only, where it will probably cost you $200…$250/person.

The proxy is for Terri Schiavo situations. More often than not, people in such a state don’t survive. Hospitals are obligated to do whatever they can to keep the person alive, while their family goes broke under the weight of medical bills. Loss of family provider and bankruptcy to others is not a good scenario. The proxy allows you to spell out whether the switch should be flipped off. You decide ahead of time.

FUD?

No, this is no fear-uncertainty-doubt talk. In fact, death and taxes are two things to happen with 100% certainty. Not planning for either is short-sighted. The only thing to fear is the government deciding what to do with your kids.

Additional reading: Get a will. Now. I’ll wait. at the Advanced Personal Finance blog.