Overview of Wills and Estate Planning

Overview

What is a Will?

A Will is a written legal document prepared for one person, called the testator, which sets forth what is to happen after death to his or her property, called the estate, and who is to be named as guardian, to care for any minor children. The Will appoints a person called the executor, who carries out the instructions in the will. A person receiving a gift from your estate is called the beneficiary.

In general, a will becomes effective only when it is signed by you and witnessed with certain formalities. It will control the disposition of your estate unless it is revoked.

Since the property you own will change over time, or the persons you named as executor or beneficiaries may die, or you may simply change your mind about how you want your affairs handled after your death, an annual review of your Will is a good idea.

Technical Requirements of a Will

In order for a will to be legally valid. it must meet your state's technical requirements. Your will must:

Either be typewritten, handwritten or oral. (The latter two types must be legal in your state for the will to be valid)
Name you as the person writing the will.
Be dated and signed by you.
Be witnessed and signed by two or more people. The witnesses should be told that they are witnessing your will and they should be present at the time you sign the document.
Although not legally required, you should always name a primary and an alternate executor, unless you don't care who the court appoints.
In addition you must be at least 18 years old when you sign your will. (In some states you must be 21).
You must be of "sound mind" which means you know the people you have named as your beneficiaries and that you know the nature and extent of your assets.

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What Happens if You Die Without A Will?

If you die without leaving a valid Will, money and other property you own at death will be divided and distributed according to "interstate succession" laws of your state. These laws divide all property between a few close relatives according to a set formula, and completely exclude, more distant relatives, friends and charities.

These laws may not reflect your wishes. If you are married and have no children, most state laws require your spouse to share your property with your parents. There is even less protection for unmarried couples. No state's intestate succession law gives an unmarried partner any property.

Intestate succession laws do not deal with the question of who will take care of minor children if both parents die or if the surviving parent is unavailable, leaving it up to the courts and social service agencies to appoint a guardian. Even though the court has the ultimate authority to appoint a guardian, a Will is the only way to let the court know who you want to raise and educate your children.

If the general laws of intestacy apply to your estate this could result in your affairs not being handled in the way you would have wished. This could lead for
example, to:

Your spouse receiving only a fraction of your assets
Only blood relatives benefiting - to the exclusion of friends and in-laws
Co-habitees being excluded from a distribution of the estate
Statutory trusts being set up for children and grandchildren on terms you might not like
Increased tax liabilities
Increased costs of administering your estate.

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Why Make A Will?

When you die your property and affairs must be dealt with. Making a Will ensures that any specific intentions you have for the division or disposal of your property, money and possessions after your death can be efficiently carried out.

A Will is particularly important when you need to:

Provide for your children - especially if you are separated or unmarried
Provide for an elderly or disabled relative
Make provision for a friend
Make a gift to charity
Minimize administration costs
Minimize tax liabilities
Prevent added stress and worry to your family at a time of bereavement

Beginning June 10, 2000, you will be able to purchase a Will from this web site that you can assemble in a few minutes using the Rapidocs™ technology that will cover most situations.