The majority of Americans do not have an estate plan. One reason for this is that many Americans believe that estate planning is best left until retirement. Others believe that only people with large estates need an estate plan. Nothing could be further from the truth.
Even if you are nowhere near retirement and do not have much in the way of assets, preparing for the unexpected is wise. According to FindLaw, a simple will may be useful for individuals who are younger with smaller estates.
What is a simple will?
A simple will is a short document that delineates what will happen with your estate after you die. A simple will functions the same way as a normal will does in terms of you naming an executor for your estate. Simple wills will also go through probate, the same way as any other estate.
Simple wills are best for people under the age of 50 who have estates that the government will not subject to estate tax. They are very useful for young couples with minor children. In the event that something happens to you and your spouse, having a named guardian is vital. A simple will can do this for you.
What can a simple will not handle?
You may not use a simple will if you have an estate that the government will subject to estate taxes. Additionally, if you wish to manage your money after death a simple will cannot do this. For instance, if you would like to set up a trust for your grandchildren, a simple will does not suffice. However, a simple will can help guide your loved ones through your death if it happens unexpectedly.