Dave Ramsey Says Don't Let Your Will Become A Family Feud – 'There's A Little Bit Of Crazy In Every Family'

Many people striving for financial stability find themselves overwhelmed by financial documents’ sheer volume and complexity.

From insurance policies to tax returns, the paperwork can seem daunting. Financial expert Dave Ramsey suggests that people can manage these challenges without undue stress with proper planning and guidance.

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One document in particular often causes anxiety and procrastination: the will. While people generally approach this task with care, Ramsey is concerned about the potential family dynamics surrounding wills. He warns that even the most thoughtfully prepared will sometimes ignite tensions among loved ones.

Wills outline how assets should be distributed after death. However, as Ramsey points out, creating and executing a will can be emotionally charged and may lead to unexpected family conflicts.

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"There's a little bit of crazy in every family," Ramsey wrote in an email to TheStreet. "You probably know who they are in our family. We all know some families that seem to have more than their fair share of crazy and drama, and wills are best for families that struggle with these issues and tension between family members. Probate court can resolve those problems."

In some instances, families can handle conflicts. If family members trust one another, they are better off with trust. "They don't need a probate court to babysit them," Ramsey said.

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When one of Ramsey's followers asked whether a will or a trust is the right choice for what he described as a "simple" financial situation, Ramsey suggested he talk to a will and trust lawyer.

A will is a legal document outlining your wishes for your assets after you die.

"There are many different types of wills, but for most people, a simple will is all you need to establish a solid estate plan that protects your family if something happens to you," Ramsey said.

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Trusts are typically designed for people with substantial assets or complex estate situations. There are various trusts, including living trusts, revocable, irrevocable and special needs trusts. A will is usually sufficient for most people with less than $1 million in assets and straightforward financial lives.

"One of the most important differences between wills and trusts is the ability to name a guardian for your minor children," Ramsey said. "You can name a legal guardian in your will, but you can't in a trust. So, even if you have a trust, you'll still need a will to make sure your kids are taken care of after you die."

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