Creating a Last Will and Testament is an important part of planning for the future. It’s a legal document that helps you decide what happens to your assets and belongings after you’re gone. Here’s a simple guide to understanding Wills and why they matter.
1. Who Can Make a Will?
In general, anyone who is 18 years or older and mentally capable can create a Will. This means that as long as you’re an adult with normal cognitive abilities, you can decide how your real estate, financial accounts, and personal property will be handled when you pass away.
2. Why Should You Make a Will?
Making a Will has many benefits:
Estate Management: You can choose who will be in charge of managing your estate after you’re gone. Usually, people name their spouse or an adult child for this role.
Control Over Distributions: You decide how your belongings, like your house or car, will be distributed.
Clarity for Family: It helps avoid confusion by clearly stating who gets what. For example, you can specify “what should happen to Aunt Genny’s lake cottage.”
Guardianship for Children: You can name someone to take care of your minor or disabled children. This involves choosing a guardian for their personal care and someone to manage their financial needs.
Protection for Heirs: It ensures that your minor or disabled heirs are taken care of according to your wishes. You can designate a custodian or trustee to handle an heir’s inheritance until they’re ready to receive it.
3. What Does a Will Do?
Here’s what a Will helps with:
Property Distribution: It tells people how to divide your belongings after you die and names the recipients.
Appointment of a Personal Representative: This person, known as an “executor” in other states, is responsible for managing your property and ensuring your wishes are followed. The Personal Representative needs to be an individual who is over 18, a bank, or a trust company.
Debt and Tax Payments: The personal representative will first pay any debts, taxes, and final expenses then distribute what’s left to your heirs.
Guardianship Nomination: It allows you to name a guardian for your children if you’re not around. A guardian is necessary if your child is under age 18 or disabled.
Handling Solely Owned Assets: It covers items that you own just in your name with no joint owner or beneficiary, such as real estate, bank accounts, vehicles, personal belongings, and other assets.
4. What Doesn’t a Will Do?
A Will doesn’t cover:
Jointly Owned Property: Property owned with someone else (like a house you own jointly with a partner or spouse).
Trust Property: Items held in a trust, except for trusts over which you have a power of appointment.
Accounts with Beneficiary Designations: Things like life insurance or retirement plans that have designated beneficiaries.
5. How Do You Manage Property with a Will?
There are different ways to distribute property with a Will:
Residuary Distributions: Giving percentages of what you own to your heirs.
Testamentary Trust: Setting up a trust in your Will to manage property for heirs after you die.
Pour-Over Distribution: Transferring property into a trust you set up during your lifetime.
Specific Bequests: Leaving a set amount of money (instead of a percentage) or certain items to individuals, organizations, or charities.
Creating a Will ensures that your wishes are respected and provides clear instructions for your family. It’s a crucial step in estate planning that offers peace of mind. If you have questions or need help with your Will, please don’t hesitate to schedule a time to meet with one of our attorneys.
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