“But, I’m young. Why do I need a will?” Most older people have a plan for their assets in the event of their death, but younger people often fail to make these plans because death seems like such a far off, unlikely event. We’re not fortune-tellers though so although the possibility of death is not a fun topic, it’s smart to lay out how you want your assets divided. Without a will, default laws which vary by state, called laws of intestacy, determine how assets are divided between family and who gets what.

Your will interacts with many other types of documents like your 401k, IRA, pension, trusts, and life insurance policies. Most of these require you to designate a beneficiary where the money will be paid out in the event of your death. These assets will transfer the funds directly to the listed beneficiary even if your will says otherwise so it is important to frequently review these assets to make sure that you have the right beneficiary listed.

Here are some important functions your will plays:

1. Provisions for children: If you have children, your will can appoint a guardian help determine who will care for them if you pass away. If there is no will, the state will appoint a guardian without your input.
2. Family-Owned Businesses: If you own a company, an estate plan, including a will, is a good way to make sure that your family inherits your business.
3.  Determine who receives your assets: Most people have special or prized possessions, whether family heirlooms or vintage cars, and want these items to go to someone special to them. Your will gives directions for particular items like this.