We're trying to finally put together a will, which we should have done a decade ago. I got access to free software through my job, so we're just using that. It's irritating because there are so many people you have to choose for things.
Well...that's kinda the whole point of estate planning.
We know my sister would get the kids, but do we put her in charge of the money the kids inherit as well? I know people would say it should be someone different, but if I trust her with my kids, wouldn't I trust her with my money?
A couple things here despite my assumption that these are rhetorical questions.
First, I don't know how old your kids are, but the likelihood that both you and your wife will die before they reach 18 is pretty low, so keep in mind that you're planning for something that isn't likely ever to happen.
Second, you can nominate a guardian for your kids, but you can't truly dictate that in the same way that you can dictate what happens to your assets. Virtually every court will give guardianship to an otherwise apparently competent adult whom both parents have designated in their wills (plural), but it's ultimately up to the court.
As far as designating the proposed guardian also to be trustee of the trust you set up to hold assets for the kids, I'm curious why you think that "people would say it should be someone different." There's no inherent reason to designate different folks and, in fact, designating different folks significantly increases the potential expense and risk of litigation over disputes. As you mentioned, if you trust someone to take care of your kids, why not let the same person safeguard the money. Of course, there may be situations where the proposed guardian isn't good with money and would benefit from oversight from someone else, but that's a case by case decision.
I know we should pay a lawyer to do all of this, and hopefully we will someday, but for now I just want to get the quick and dirty version done.
Not unreasonable. If you've got a home or other substantial assets, you'll definitely want an attorney.