The Last Will and Testament
We attempt to answer as many inquiries as possible that drop into our inbox. Recently we got the question – What is the difference between a living trust and a will? We are going to discuss each one in separate posts. Let’s take a shot at it.
The Last Will and Testament
A Will, commonly called the Last Will and Testament, is a means by which an individual names another person as the manager of his/her estate and provide for the distribution of property and/or assets upon his/her death. The person who is named to manage the estate is called the ‘testator.’ The Last Will and Testament outlines who will inherit your property, how they will inherit it and when. The Will also states who will be in charge of making sure your desires are carried out. Wills are also public and must go through probate. Wills are an essential part of your Estate Planning process. Think of a Will as a letter of instruction from you, being very specific about how you want your final affairs handled and the people you wish to benefit from your estate. Wills should be updated periodically because things in life change which invariably requires our attention to make appropriate adjustments.
Estate Planning for Federal Employees
The Will is the nucleus of the the estate plan. From the Will, everything else emanates. It very simply spells out your wishes, telling how you want your assets and resources distributed and how the people who depend on you will be taken care of. Your Will is an instruction to a court of law. Wills must go through probate so that its validity can be legally established. Wills can be contested. Laws surrounding Wills vary from state to state. When the Will is registered with the court, it becomes a matter of public record. If a court finds a Will to be invalid, it will be treated as if you died without a will (intestate). Depending on the state you live in, having no Will, it will be decided in accordance with the law how your property and assets will be distributed. If there are no relatives, your property will become the property of the state.
Wills should identify you and give a brief description of the property and assets you want to distribute. It should also contain a full and complete description of the property you wish to distribute and your right to do so; followed by a very clear and detailed itemization of who you want your property and assets to go to. When an attorney represents your Will before the court it is called probate. Sometimes wills may take as long as 9 months to 2 years to go through probate. The process can sometimes be fairly costly ranging anywhere from 2 to 5% of the total value of the estate.
Also it is worth mentioning that Wills are only executed when you pass away. So if you become ill during your life and cannot speak for yourself or handle your affairs, someone needs to be available to do that for you. That is when it might be wise to name a trustee and give someone Power of Attorney specifically where your health and finances are concerned. Planning helps us to have a say in how we want things handled in our lives. We will discuss a few more items about Wills before we move on to the topic – Living Trust.
It is so much easier by the inch than the mile.
P. S. Always Remember to Share What You Know.
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