An Introduction to Wills - Estate Planning for Property Owners
A will is a legal document when properly prepared will dictate how you want your earthly assets to be distributed.
Testate: Having a legal and valid will that expresses your wishes as to how you want to distribute your assets. A proper will contains a list of assets and clearly named (use the full legal name) beneficiaries, often a good idea to name second beneficiary.
Signed and witnessed: The will must be signed and witnessed, preferably by two witnesses.
The Executor: The will should also designate an executor and a second to be charged with carrying out your wishes and a guardian for minors. If the will does not designate an executor the courts may appoint one for the execution of your wishes, a costly and time consuming process.
Intestate: When you do not have a will the states have laws governing all aspects of the estate planning process. State law will cover legal validity of wills, creation of trusts and more Therefore you must have expert advice in the state where you are residing.. Passing without a will or intestate means that the laws of succession as dictated by your state will determine who gets what.
Why Do It:
- Your wishes are expressed and assets pass to whom you feel is most deserving
- Wills can avoid family squabbles
- The will is part of a good estate plan that can save time and money
Where to Begin
The place to begin when considering a will is yourself.
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List Your Assets: Make a list of all your assets with full descriptions and absolute locations.
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Executors: This is the person who will execute your wishes. Choose wisely, consider someone who has your trust and has the capabilities to handle complex financial issues and the personal capacity to deal with difficult emotional circumstances.
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Family Members: Consider the needs of family members and who would benefit the most by a particular asset. Consider those who may need income and those who may need opportunity and divide your assets according to need.
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Children: Children who may need a named guardian to care for them until they reach maturity. You can have assets held in trust or managed by another until the children reach a designated age, it need not be 18 or 21.
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Charitable Giving: You may have favorite organizations that could use your help. The IRS creates very favorable tax conditions for those who would give The will should contain your legal name and address. A list of all your assets and who you want to have them. These would be the beneficiaries of your estate. It is also a good idea to name an alternate beneficiary for each asset, a plan “B”, of sorts.
Do you need a trust?
If your circumstance is simple
and you do not have property or a large estate you may not need a
trust. The main difference between a trust and a will is that assets
held in trust do not have to go through probate.
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Trusts: A trust is a legal document. The trust names an individual as trustee. It bestows on the trustee legal title to property and the right to administer the assets named in the trust document.
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Probate: Probate is a costly and time consuming judicial process that uses the court system to clear title and determine. A properly drawn trust can avoid the probate process.
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