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.
Table of Contents
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.
A will gives you and your family peace of mind by allowing you to decide who you want to care for your children and pets. Plus, a will can help ensure that your estate is settled quickly as possible with minimal confusion or fighting. You can make sure that close family, relatives near or far, or your friends can have something to remember you by. Even if you don't leave a lot of money behind, that's still a valuable gift to give to your loved ones.
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.
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).
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.
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
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.
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.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during September 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Credit utilization and debt relief
How are people using their credit before seeking help? Credit utilization measures how much of a credit line is being used. For example, if you have a credit line of $10,000 and your balance is $3,000, that is a credit utilization of 30%. High credit utilization often signals financial stress. We have looked at people who are seeking debt relief and their credit utilization. (Low credit utilization is 30% or less, medium is between 31% and 50%, high is between 51% and 75%, very high is between 76% to 100%, and over-utilized over 100%). In September 2025, people seeking debt relief had an average of 73% credit utilization.
Here are some interesting numbers:
| Credit utilization bucket | Percent of debt relief seekers |
|---|---|
| Over utilized | 30% |
| Very high | 32% |
| High | 19% |
| Medium | 10% |
| Low | 9% |
The statistics refer to people who had a credit card balance greater than $0.
You don't have to have high credit utilization to look for a debt relief solution. There are a number of solutions for people, whether they have maxed out their credit cards or still have a significant part available.
Collection accounts balances – average debt by selected states.
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In September 2025, 30% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,203.
Here is a quick look at the top five states by average collection debt balance.
| State | % with collection balance | Avg. collection balance |
|---|---|---|
| District of Columbia | 23 | $4,899 |
| Montana | 24 | $4,481 |
| Kansas | 32 | $4,468 |
| Nevada | 32 | $4,328 |
| Idaho | 27 | $4,305 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Tackle Financial Challenges
Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
Show source
Author Information
Written by
Kailey Hagen
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
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
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.