Understanding Wills

What is a will?
A will is a document that sets forth how a person would like to have his or her probate property distributed upon death. To be valid, a will must meet certain formal legal requirements.

Who may make a will?
Any person who is at least 18 years old, of sound mind, and not under any influence, may make a will in most States.

How is a will made?
With limited exceptions, a will must be written and signed. A will must be witnessed by at least two people who have no interest in the will, in a special manner provided by law, and it must be executed in strict accordance with the law. 

May I change my will?
Yes; you may change your will as often as you wish. You may change your entire will or you may change only part of it by using a document called a codicil. You should have your will reviewed if you have a change in circumstances, such as a marriage, birth of children, a divorce, changes in the nature or value of your estate, or if there are changes in the law. 

How long does my will last?
A properly executed will is valid as long as it is not revoked. A will is generally revoked when a new will is executed. 

Does having a will increase my probate expense?
No. Generally it costs no more to administer an estate when you leave a will than it costs to administer an estate when there is no will. When there is a will, the executor distributes your probate property as you have directed in your will. When there is no will, the probate court will guide and enforce the distribution based upon provisions of  your States law. In either case, the probate court must supervise the will’s administration.

How large an estate must I have to justify a will?
Everyone who owns any real or personal property should have a will, regardless of the properties’ value, because the purpose of the will is to ensure that the property is distributed the way you want it to be distributed, regardless of its value. Keep in mind, your estate may grow in value almost unnoticed through, for example, the repayment of mortgages, appreciation of stocks and other investments, or inheritances from relatives.

May I dispose of my property to any person or entity I choose under my will?
Yes. However, State law gives a surviving spouse and minor children certain rights over property that cannot be defeated by a will. Talk to an attorney about these rights.

Does a will let me avoid estate taxes and other ‘death’ taxes?
The value of your estate will determine whether an estate tax return will need to be filed. However, through the use of tax-planning techniques, a properly drafted will may help reduce the amount of taxes that have to be paid after your death. An estate-planning attorney is skilled not only in the laws of wills and property, but also must be familiar with both state and federal estate tax laws.

What happens if I die without a will?
If you die without a will, or intestate, as the law calls it, your probate property will be distributed to your nearest family members according to a formula fixed by law. 

Who should draft a will?
The drafting of a will requires professional judgment, and Estate planning can help you avoid pitfalls and any financial disasters that could occur.

If you are considering Retirement Planning, call for a free consultation today.