Time for Some Willful Action

Where there’s a will. . . .there’s a piece of software

Do you have a will? If you’re like about 70% of Americans, the answer will be no.

People put off writing their wills for a host of reasons: They’re young and healthy--or simply healthy. They don’t have many assets, or they expect to have a lot more before they die. Besides, they think, writing a will appears to be a time-consuming, expensive task.

If you have children or an untraditional lifestyle, though, you need a will no matter how little or how much money you have in the bank. That’s simply because if you die without one, a court will designate guardians for your children and heirs to your assets based on state intestacy laws, not on the specific relationships in your family. In addition, state inheritance laws usually don’t recognize relationships between single people even if they are nonetheless committed lifelong partners.

What about the expense? If you’ve got access to the Internet, there’s now a way to write a will in a matter of minutes, for free.

A San Diego company called Legaldocs.com (https://legaldocs.com) has launched a World Wide Web site where consumers can log on, jump to “wills” and write their own by typing their way through an interactive questionnaire.

The questionnaire asks about your family relationships, whether there’s anyone you specifically want to disinherit, and if you want to bequeath certain assets to specific people or simply leave set percentages of your estate to specific people or organizations. It also allows you to name an executor for your estate and guardians for your children.

Once you’ve finished the questionnaire, the system will write a will incorporating your specific wishes. You can review, correct, submit and print the form. Sign the document in front of two independent witnesses who sign the document too, and voila: You have a will.

It’s worth mentioning that some attorneys argue that consumers shouldn’t do their own wills because they might make mistakes and render the documents invalid. If you have complicated desires that are not addressed by the will questionnaire on the Web, that’s probably a concern worth considering. If your desires are simple, however, there’s no reason you can’t go it alone, says Stephen Elias, an attorney and author of a competing software package called WillMaker. The free Legaldocs will isn’t half bad, Elias adds. It’s better than most written form wills and competitive with most of the will software that’s on the market, although Elias says he still likes WillMaker better.

Legaldocs is also offering a host of other free legal documents at its Internet site, but company founder Edward Schott plans to start charging for most documents in a few months. The limited-time free deals are offered so potential customers can get a look without committing any cash. Schott promises to keep the will feature free indefinitely, however.

You have the will to write a will, but you’re not wired? Never fear. California also recognizes handwritten and statutory wills. Statutory wills, which essentially are fill-in-the-blank forms, can be purchased at some book and stationery stores. Nolo Press, Elias’ publisher, also offers will books and software ranging in price from $10 to $70. Most are stocked in large bookstores and public libraries.

* If you’re thinking of an IPO stock. . . .

Think twice before you buy stock in an initial public offering from the brokerage firm that brought the company public, says a study by Cornell University’s Johnson School of Management. Such IPOs under-performed those recommended by unrelated brokerage houses by 55% during the two years after the public offering, according to the study. Those recommended solely from underwriting brokers didn’t just under-perform, they lost money, on average, during the first year after going public.

* Free help for the overextended.

Consumer delinquencies on credit cards and mortgage loans are hitting 15-year highs, and the number of personal bankruptcies is soaring, according to a host of credit industry surveys.

Chicago-based management consulting firm A.T. Kearney blames the problem on banks that have been aggressively lending to consumers previously considered bad credit risks. And Kearney predicts that things will get worse before they get better. The reason: Delinquencies normally rise when interest rates are high or during times of national recession, unlike today, when delinquencies are rising in a relatively low-rate environment as the economy and personal incomes are growing.

Bankers are being encouraged in a host of industry newsletters and conferences to step up collection efforts and enforce risk-management techniques.

If you’re a statistic--one of those unable to pay on your debts--you may want to check out some free publications. MasterCard and the National Foundation for Consumer Credit have teamed up to offer “In the Red: Learning to Manage Your Debt.” To get a free copy, call (800) 633-1185.

The American Bankruptcy Institute, MetLife and the Justice Department have released “Bankruptcy,” which explains the process and its repercussions. To get a free copy, write to Consumer Information Center, Department 608C, Pueblo, CO 81009.

Consumer Checklist is a new feature covering a range of pocketbook issues that are of interest to Californians. To contribute information about new legislation, products, services or surveys, write to Kathy M. Kristof, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053; or e-mail [email protected]