What Is a Will?
A Will also referred to as a Last Will and Testament, is a legally prepared and bound document that states your intentions for the distribution of your wealth and assets after your death.
This document also allows you to, if you have children, designate who will care for them.
How Does a Will Work?
A Will should state what powers your executor that you want to have when settling your estate.
If the other parent died or died with you in the same event, the Will should designate a guardian to take charge of your children until they reach adulthood.
Additionally, since minors cannot own a property, the Will can also name a conservator to manage any cash or assets you bestowed to your children.
A probate asset is what your Will can only deal with, such as items or properties you possess that have no other means of passing to a living individual without the probate process.
Non-probate assets include real estate held by joint tenants with survivorship rights, life insurance benefits, and many retirement plans that name beneficiaries directly. By process of law, they will pass to those individuals outside your Will.
Types of Wills
Different types of Wills can be tailored to your specific needs and desires.
Some of the more commonly used types are:
Simple Wills
A Simple Will lets you state your basic wishes without multiple stipulations or clauses involved.
You can use a Simple Will to name an executor, outline how you would like your assets divided, and name guardians for any minor children.
Testamentary Trust Wills
A Testamentary Trust Will, also called a "Will Trust" or "Trust Under Will," is written inside a Will.
It is a will that sets up a trust after your death and gives the trustee power to hold and manage assets for beneficiaries.
Testamentary Trusts are frequently used in cases when beneficiaries will have to be cared for over an extended period, and they will go through probate.
Joint Wills
A Joint Will is the same as Mutual Will but only has one document compared to a mutual one with two.
In instances where you want your spouse to be the beneficiary of your whole estate and your children as the final beneficiaries after you both pass, a joint will can be helpful.
A Joint Will becomes irrevocable after one partner passes. However, changes can be created if both parties are still living.
Online Wills
An Online Will is a will you create with the help of an online service or software. It can be less expensive than working with an attorney and is often more convenient.
When you choose to make any Estate Planning documents online, ensure that you read reviews and confirm their legality and authority before relying on this option.
Deathbed Wills
A Deathbed Will also called a "nuncupative will," is made orally by the testator on their deathbed.
This type of Will is generally only used in cases where the testator does not have time to prepare a written will before their death.
Holographic Wills
A Holographic Will is handwritten, dated, and signed by the testator. It does not need to be witnessed like a traditional will.
This type of Will is often used in cases where the testator knows they are going to die and doesn't have time to prepare a written will but wants to leave specific instructions for their belongings.
Nuncupative Wills
A Nuncupative Will is an oral will that the testator makes. It must be made in the presence of two witnesses and later reduced to writing.
What are the Legal Requirements of a Will?
In any state of the United States, legal requirements to make a Will include:
- Knowing what properties you own and what it means to leave them to someone when you die.
- Signing the document
- Having two adults as witnesses signed the document.
Steps for Creating a Will
To ensure that your Will is binding legally, you must follow these steps:
Bottom Line
A will is an important part of your estate planning, and you should have one in place despite the size of your estate.
Consider talking to an attorney if you need help creating a will or have questions about the process.
Creating a will is a personal decision, and you should do what makes you feel most comfortable.
FAQs
1. What is a Will?
A will is a legal document that defines how you would like your assets to be distributed after you die.
2. How does a Will Work?
A will takes effect after you die. Once the Will is Probated and your debts and taxes have been paid, your assets will be distributed as per the instructions in your Will.
3. What Happens if you don't have a Will?
If you don't have a will, your assets will be distributed according to your state's laws of intestate succession.
Your assets will move to your closest relatives, starting with your spouse and children. If you have no relatives, your assets will go to the state.
4. Where should I keep my Will?
You should put your Will in a safe place where it can be easily found after your death. Many choose to keep their Will with their attorney or in a safety deposit box.
It's important to tell your executor or another trusted person where you have kept your Will.
5. How often should I update my Will?
You should recheck your Will periodically and make changes as needed. You may want to update or make changes to your Will if you get married, have children, or experience any other significant life changes.
You should also update your Will if there are any changes in the distribution of your assets.
