Why You Should Have a Will, Even if You’re Not Rich
- Everyone who owns something needs a will, even if they don't have much.
- Your estate planning can impact what people do if you're unable to communicate in a medical situation.
- Wills can prevent misunderstanding and strife among your loved ones.
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Many people think of wills as something only for wealthy individuals. But if you have children or pets, or you own anything of value, you should have one. A will gives you the power to determine who gets what after you're gone. Plus, a will can help ensure that your estate is settled quickly as possible with minimal confusion or fighting. Making a will is much easier than many people think. If you haven't made yours yet, here's a closer look at the benefits of doing so and how to make it happen without breaking the bank.
Many adults put off making a will, assuming it's only necessary for the wealthy or that they'll get to it eventually.
Wills and Other Types of Estate Planning Tools
Estate planning* is the process of arranging for the management and transfer of your assets after your death, to ensure your wishes are carried out and the people important to you are cared for. You can use several estate planning legal tools to detail who inherits your assets. It’s a good idea to familiarize yourself with the various types of estate plans, including:
Will (short for Last Will and Testament). A will directs your assets to the people you want to have them after you die. It names a personal representative (an executor), who is the individual or institution that will oversee the distribution of your assets and settle any outstanding debts. A will goes through probate. That’s a legal process where a court oversees the transfer of a deceased person's assets to their loved ones—to be executed and become a final public record.
Trust. A trust is an instrument that allows a third party, a trustee, to hold assets from the grantor (giver) for the benefit of other parties, called beneficiaries. A trust is similar to a will in some ways, but it avoids probate and may minimize estate taxes.
Living will. A living will is a written document that specifies the kind of medical care you want to receive (often focused on life-prolonging treatment) if you are in a life-threatening situation and can’t communicate your wishes.
Healthcare power of attorney. A healthcare power of attorney allows you to choose someone to make healthcare decisions on your behalf if you’re unable to do so on your own.
Living trust. Like other types of trusts, a living trust allows you to direct the distribution of your assets after you die. With a living trust, however, you transfer your property and assets to the trust while you’re alive. Living trusts can be revocable (can be changed) or irrevocable (can’t be changed).
Will vs. Trust: How They Compare
A will and a trust both direct where your assets go. Each works in a different way. Here's a side-by-side look.
Will vs. Trust
| Feature | Will | Trust |
|---|---|---|
| When it takes effect | After you die | Can manage assets during your lifetime and after |
| Whether it goes through probate | Typically goes through probate | Typically avoids probate |
| Privacy level | Becomes public record | Stays private |
| Setup cost | Generally lower | Generally higher |
A trust can hold major assets, like a home or investment accounts. A will covers anything left out of the trust and names guardians for children.
Do I Need a Will?
Even if you consider yourself an average Joe and you’re not a millionaire, a will is usually a necessity. You should have a will to facilitate the following:
Assets distributed according to your wishes. A will ensures the things you own go to the person or people you want them to. You can even say in your will that you want a person to receive a specific item, like a family heirloom, that you own.
Simple, orderly distribution of assets. Having a will can ensure that your beneficiaries get what you leave for them more quickly and with fewer challenges than they might face if you died without a will. If you die without a will, you're said to have died intestate and a court decides who gets your property based on state law, which may not align with your wishes.
Desired guardianship for children and pets. One of the biggest decisions any parent or pet parent has to make is who will look after their kids or pets after they're gone. If you yourself don’t choose this person, the court will make the decision.
Executor of your choosing. A will is where you name the person you trust to carry out your wishes, instead of leaving that decision to the court.
Fewer conflicts among loved ones. Clear instructions in a will can help your family avoid disagreements about who receives what.
How to Set Up a Will
Many people don’t make a will because they believe they can’t afford it, particularly if they're struggling with debt. Fortunately, creating a will doesn't have to be expensive. If you’d like to set up a will, consider the following options.
DIY. If your situation is fairly simple, you can prepare a will using software. It could cost you $0 to $250.
Professional. If your situation is more complex or you don’t feel comfortable using a software program, consult an estate attorney, financial planner, or Certified Public Accountant (CPA). Some of the more expensive software options offer assistance from a vetted, licensed attorney.
No matter which route you choose, you’ll need a list of the names, addresses, and birth dates of your spouse, children, guardians, and other beneficiaries or necessary parties, like your chosen executor. Then, you’ll compile detailed information about your assets, which may include:
Real estate
Savings accounts
Investment and retirement accounts
Life insurance policies
Businesses
Vehicles
Personal property
Making your will legally valid
A will typically needs to meet a few basic requirements to hold up in court. Requirements vary by state, but most states require the following:
You are an adult of sound mind. Most states require you to be at least 18 years old and mentally competent when you sign your will.
Your will is in writing. Oral wills are rarely recognized, and only in narrow circumstances.
You sign your will in front of witnesses. Most states require two witnesses who are not beneficiaries named in the will.
Your will names an executor. This is the person who carries out your instructions after you die.
An estate attorney can confirm the exact requirements in your state before you sign.
If you take the time to collect everything you need to draft your will in advance, you’ll find the process is faster and easier. As your life changes with marriages, divorces, births, or deaths, revisit your will to make sure it still reflects your wishes. Also, be sure to make your loved ones aware of what is in your will and how they can access the latest legal copies.
Don’t Allow Your Debt to Become Someone Else’s Burden
In most cases, when you pass away your debts will become the responsibility of your estate and your personal representative will use your assets to pay them off. If you’d like to ensure your debt is gone so your loved ones aren’t left with the burden, begin your debt-free journey today.
Looking for debt relief in Colorado Springs, CO or across the country? The first step is the most important one—learn more.
You have several options to eliminate your debt, including debt management plans and debt settlement. Freedom Debt Relief can help you review your options so you can decide which is the best course of action for you.
*Disclaimer: At Freedom Debt Relief, we do not practice law or give legal advice. This post is meant simply to provide basic information on estate planning and help you start your research if you are interested in making a plan. Please consult an attorney or financial professional for advice and assistance in drafting a will or any other estate plan.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during February 2026. The data provides insights about key characteristics of debt relief seekers.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In February 2026, the average FICO score for people seeking debt relief programs was 592.
Here's a snapshot by age group among debt relief seekers:
Middle 6 table
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 575 | 82% |
| 26-35 | 582 | 79% |
| 35-50 | 588 | 77% |
| 51-65 | 589 | 75% |
| Over 65 | 603 | 70% |
| All | 592 | 74% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In February 2026, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.
Here is a quick look at the top five states by average student debt balance.
Next 2 - Student debt by states
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| District of Columbia | 34 | $71,987 | $203 |
| Georgia | 29 | $59,907 | $183 |
| Mississippi | 28 | $55,347 | $145 |
| Alaska | 22 | $54,555 | $104 |
| Maryland | 31 | $54,495 | $142 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Kailey Hagen, CFP
Kailey is a CERTIFIED FINANCIAL PLANNER® Professional and has been writing about finance, including credit cards, banking, insurance, and retirement, since 2013. Her advice has been featured in major personal finance publications.
Reviewed by
Lindsay Vansomeren
Lindsay is a writer for Freedom Debt Relief. She's passionate about helping people learn how to manage their money better so that they can live the life they want. She enjoys outdoor adventures, reading, and learning new languages and hobbies.
Why is it important to have a will?
Having a will makes sure your final wishes are carried out. You can decide who inherits your money and property as well as who will assume guardianship of your pets or any minor or disabled children you're caring for. It can also streamline the estate settlement process so your loved ones get what you've left them faster.
What happens if there is no will?
When someone dies without a will, that’s known as dying intestate. In this case, a court will decide which living relatives inherit your property and take custody of your children or pets. The court usually follows state laws that dictate the order of priority for distribution. The law usually favors surviving spouses and children, then other close relatives.
What happens to bank accounts when someone dies?
Money remaining in joint bank accounts belongs to the other account holders. If you designate a person to inherit your individually owned bank account after you die, that person will receive the funds after you're gone. If you don’t designate a beneficiary for your bank account, it will become part of your estate. Then, it will be distributed according to the terms of your will or trust or according to your state's laws. A simple way to bypass probate for individual bank accounts and some investment accounts is to file paperwork with the financial institution. You can fill out a form for a transfer-on-death (TOD), sometimes called a payable-on-death (POD) designation.