NerdWallet: You're not too young to make a will

Making a will isn't a task just for the old and wealthy. It's also for the well-prepared.

Recent years serve as a heavy reminder that you might not know when your last days are. Life expectancy in the U.S. dropped in both 2020 and 2021, driven by COVID-19 deaths and an increase in accidental deaths, according to the most recent data available from the Centers for Disease Control and Prevention.

More than 1 million people in the U.S. have died of COVID-19, according to the CDC. And in 2021, accidents or unintentional injuries were the fourth leading cause of death in the U.S., the organization found.

It's unlikely you'll die young. But if the unexpected happens, having a will in place -- even if it feels like you don't need one -- can be a simple way to avoid leaving important decisions about your assets and guardianship wishes to your state's laws and courts. It doesn't have to cost thousands of dollars, either.

What can happen if you don't have a will

If you don't have a will -- called "dying intestate" -- your assets are distributed by a probate court according to your state's laws of intestacy. Going through probate without a will can be a longer, more complicated process, as inheritors must file a petition to make a claim to the assets.

Intestacy laws vary among states, but they generally prioritize close family members, such as spouses, children, parents and siblings, as beneficiaries. If you don't have a will, "funds can wind up in the hands of unintended recipients," said Regina Kiperman, managing attorney at estate planning law firm RK Law PC in New York.

Dying intestate can be damaging even if you don't have a spouse or children. In this case, your next of kin will likely be a parent. Significant assets can disqualify an older adult from Medicaid eligibility, Kiperman said.

If you do have children, a will is just as crucial. Regardless of whether you have assets to pass down, a will is the only way to name a legal guardian of your choosing in the event of your death. Otherwise, state laws determine who cares for your child and what they inherit.

When should you make a will?

"The right time to make a will is based on life events, not age," Kiperman said. Generally, these events fall into three categories: acquiring assets (such as buying a house); legal attachment to someone else (getting married or having a child); and risk of death (health diagnosis or even remote travel).

In some cases, it's helpful to make a will as soon as you're of legal age -- 18 in most states.

"I wanted to protect myself as early as possible," said Mariel Picknelly, 21, a singer and content creator based in New York. Her mother encouraged her to make a will as soon as she reached adulthood to protect assets titled to her at birth. Having her own will has given her and her family security about the future.

"I keep my purse close because I don't want anyone to take the things that are meant for me and my family and my future," she said. "A will works the same way."

How to get started

Making a will doesn't have to be time-consuming or costly. Some websites offer will templates you use for free; make sure it complies with your state's will requirements. Online will-making software allows you to make a custom will for around $100.

Those with more complex assets or family situations may want to consult an estate planning attorney to help craft a will. Costs can range from around $200 to $350 per hour, or $1,000 to $2,000 for a flat-rate estate package, depending on your location and the experience level of your lawyer.

While a will is a good starting point, more is needed in some cases. If you have complex assets or family situations, setting up trusts could make the transfer of assets faster and more seamless, potentially helping you bypass the time-consuming probate process, which is the legal process for distributing assets of a person who has died.

For example, "If you have volatile assets, such as investments in different securities, you might want a trust instead of a will so someone can take immediate control of the assets," Kiperman said. Trusts also offer more protection if you have minor children or a lifelong dependent whom you'd like to inherit assets in a more controlled manner.

However, just because there may be more optimal estate planning tools doesn't mean a will isn't valuable. An imperfect plan is better than none at all.

"People say that having a will is just for rich people," Picknelly said. "It's not -- it's for careful people. You don't need to have a huge amount of assets; you just need protection for when you're not around to speak for yourself."

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This column was provided to The Associated Press by the personal finance website NerdWallet. The content is for educational and informational purposes and does not constitute investment advice. Dalia Ramirez is a writer at NerdWallet. Email: dramirez@nerdwallet.com.

RELATED LINKS:

NerdWallet: Last Will and Testament: What It Is, How to Create One https://bit.ly/nerdwallet-what-is-a-will