One of the most important legal activities each of us faces is deciding how, after our death, our assets will be used and who will benefit from them. However, a great number of people die intestate (without a will).

When that happens the state or others decide for us where and how the estate will be distributed. If your preferences have not been clearly stated in a will, then it is likely that those preferences will not be carried out. It is vital that you have a will.

If you really don’t have much or don’t expect anyone to fight over what you have, you can create your own will. You may want to use a self-help book or will-making software to assist in this process or go online for a will kit.

If your estate is larger or you think your family may fight over who gets what, invest in a lawyer’s help. You will be assured that the will is legal and in accordance with your intentions. You may also feel more comfortable having a lawyer review your will, even if there are no apparent legal complications.

A simple will should cost about $200. A more complicated estate plan, including a living trust, can run $1,500 or more. Consult a few different law firms to get the best price.

Your basic will:

• leaves your property to the people and organizations you choose

• names someone to care for your minor children

• names someone to manage property you leave to minor children (yours or someone else's), and

• names your executor, the person with authority to make sure that the terms of your will are carried out.

Whether you use a lawyer or craft your own will, here are some questions you’ll need to address:

1. If you have children under age 18, who do you want to raise them if you and your wife are both deceased? It’s important to ask these people first to make sure they are willing to serve as your children’s guardians. You should have two different names in case your first choice is not available at the time of your death.

2. If your children and your spouse die before you do, who do you want to inherit your stuff? If you don’t name alternate beneficiaries, your assets will be distributed according to state law.

3. Who will you appoint as executor of your will? The executor is the person who carries out the terms of your will. Usually, husbands appoint wives and vice versa, but both of you will need an alternate. Be certain to discuss the job requirements of an executor and get his or her consent first. Also, consider naming someone younger than yourself so that he or she is likely be around when needed to act as your executor.

4. If you want to leave certain pieces of property to certain family members or friends, you’ll need their addresses and phone numbers. Now is the time to ask them what they might want.

You may want to prepare a power of attorney and a living trust at the same time you create a will. Power of attorney gives someone else the power to handle your affairs such as paying your bills if you become too sick to do it yourself. Usually your spouse gets power of attorney.

A living will is often confused with a living trust, but they are two very different things. A living will gives your doctors the power to withdraw life support if you are dying and may tell them not to use extraordinary means to keep you alive when there is no longer any hope. A living trust has to do with your property.

Most wills have six basic parts.

Part 1 identifies the person making the will, his or her spouse and issue (issue means all biological and adopted children and their children and their children’s children, etc). In Part 1 you’ll find the famous phrase: “My Last Will and Testament,” meaning that this is now the last one, and any other ones are now no good.

Part 2 directs your executor to pay off all your debts and taxes. These include the ones that recur like your mortgage, and all one-time expenses like your funeral.

Part 3 is where you actually give away your possessions. Nine times out of ten everything goes to your spouse, but many people do want to direct certain things to certain people. Here the language of the will is very important. For example, if you leave your Chinese vase to Cousin Otto, and Cousin Otto dies before you, then the vase goes to Cousin Otto’s kids.

If you want to keep it in your family, you have to word it such that if your cousin is dead, the vase becomes part of your residuary estate (see Part 4).

Part 4 is about your residuary estate or everything that’s left after you pay expenses and debts, and give away all the stuff from Part 3 of your will. Most people leave their estate to their spouses. If the spouse is dead, then it usually goes in equal parts to their children.

Part 5 is where you appoint your executor. Usually it reads: “If so-and-so can not serve as my executor, then I appoint so-and-so.”

Part 6 has the names and signatures of your witnesses, who are never people mentioned in the will. If using a lawyer, he or she may have office staff sign the will, and then he or she will notarize it.

You should update your will from time to time. If you move to a new state, if you get a divorce, if your children’s guardians can’t serve, or if your possessions or wealth change, it’s time to change that will.

If your estate is large enough to worry about estate taxes, reviews would be appropriate at least every few years and again after major estate tax legislation.

Be sure to coordinate your will with other documents listing beneficiaries, such as life insurance and retirement accounts. If you try to give those assets to someone else in your will, you run the risk of setting off a legal battle. Check with your financial institution and broker, too, about beneficiaries named on your accounts.

When you finish your will, congratulate yourself for dealing with a topic many people like to avoid!

A final word: your family doesn’t need to know what’s in the will, but they do need to know where it is located. Don’t think that giving it to your executor is enough since he or she may not be available when the time comes. Don’t leave the original in your safe deposit box either, since it may not be accessible upon your death.

You’ve spent time and money on your will, so make certain that it can be located and used to ensure that your final wishes are carried out.

See what you learned.