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A will provides for the distribution of property owned by you at the
time of your death in any manner you choose (subject to the forced
heirship laws of some states that prevent disinheriting a spouse
and, in some cases, children). Your will cannot, however, govern the
disposition of properties that pass outside your probate estate
(such as certain joint property, life insurance, retirement plans
and employee death benefits) unless they are payable to your estate.
Wills can be of various degrees of complexity and can be utilized to
achieve a wide range of family and tax objectives. If a will
provides for the outright distribution of assets, it is sometimes
characterized as a
simple will. If the
will establishes one or more trusts, it is often called a
testamentary
trust will. Alternatively, the will may leave probate
assets to a preexisting inter vivos trust (created in your
lifetime), in which case it is called a
pour over will. In
either case, the purpose of the trust arrangement (as opposed to
outright distribution) is to ensure continued property management
and creditor protection for the surviving family members, to provide
for charities, and to minimize taxes.
Aside from providing for the intended disposition of your property
to spouse, children etc., there are a number of other important
objectives that may be accomplished in your will.
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You may designate a guardian for your minor child or children if
you have survived the other parent-and, by judicious use of a
trust and appointment of a trustee, eliminate the need for bonds
and supervision by the court regarding the care of each minor
child's estate.
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You may designate an executor of your estate in your will and
eliminate the need for a bond; in some states the designation of
an independent executor will eliminate the need for court
supervision of the settlement of your estate.
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You may choose to acknowledge or otherwise provide for a child
(e.g., stepchild, godchild, etc.) in whom you have an interest,
an elderly parent, or other individuals.
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If you are acting as custodian for the assets of a child or
grandchild under the Uniform Gift (or Transfers) to Minors Act,
you may designate your successor custodian and avoid the expense
of a court appointment.
Good planning can also enhance your support of religious,
educational, and other charitable causes.
WHAT A WILL DOES NOT DO!
A will
does not govern the transfer of certain types of assets, called
non-probate property, which by operation of law or contract pass to
someone else on your death.
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