Need an introduction to Wills? You are not alone. Many basic questions that most people have regarding Wills
include: What happens if you die without a Will? What does a Will do? What does
a Will not do? and how do I execute (sign) a Will? Specific state laws are used
in determining the answers to these questions. However, below are answers that will
help you have a better understanding of Wills as referenced by the American Bar Association.
What Happens if You Die Without A Will?
If you die intestate (without a will), your state's laws of
descent and distribution will determine who receives your property by default. That
default plan may or may not reflect your actual wishes, and some of the
built-in protections may not be necessary in a harmonious family setting. A
will allows you to alter the state's default plan to suit your personal
preferences. It also permits you to exercise control over a myriad of personal
decisions that broad and general state default provisions cannot address.
 |
| Image Source |
What Does a Will Do?
A will provides for the distribution of certain property
owned by you at the time of your death, and generally you may dispose of such
property in any manner you choose.
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 creates one or more trusts upon your death, the
will is often called a testamentary trust will.
Aside from providing for the intended disposition of your
property upon your death, a number of other important objectives may be
accomplished in your will, such as:
•You may designate a guardian for your minor child or
children if you are the surviving parent and thereby minimize court involvement
in the care of your child.
•You may designate an executor (personal representative) of
your estate in your will, and eliminate their need for a bond.
•You may choose to provide for persons whom the state’s
intestacy laws would not otherwise benefit, such as stepchildren, godchildren,
friends or charities.
•If you are acting as the custodian of assets of a child or
grandchild under the Uniform Gift (or Transfers) to Minors Act (often referred
to by their acronyms, UGMA or UTMA), you may designate your successor custodian
and avoid the expense of a court appointment.
What Does a Will Not Do?
A will does not govern the transfer of certain types of
assets, called non-probate property, which by operation of law (title) or
contract (such as a beneficiary designation) pass to someone other than your
estate on your death. For example, real estate and other assets owned with
rights of survivorship pass automatically to the surviving owner. Likewise, an
IRA or insurance policy payable to a named beneficiary passes to that named
beneficiary regardless of your will.
How Do I Execute (sign) a Will?
Wills must be signed in the presence of witnesses and
certain formalities must be followed or the will may be invalid. In many
states, a will that is formally executed in front of witnesses with all
signatures notarized is deemed to be “self-proving” and may be admitted to
probate without the testimony of witnesses or other additional proof. Even if a will is ultimately held to be valid
in spite of errors in execution, addressing such a challenge may be costly and
difficult. A potential challenge is best
addressed by executing the will properly in the first instance. A later amendment to a will is called a
codicil and must be signed with the same formalities. Be cautious in using a
codicil because, if there are ambiguities between its provisions and the prior
will it amends, problems can ensue.
Birmingham Estate Planning Attorney Richard Burton provides legal services in Estates, Wills & Trusts, Probate Administration, Guardianship and Conservatorship, Asset Protection Planning, Business Succession Planning, Federal & State Tax Planning, Charitable Giving & Private Foundations. Contact Richard at www.attorneyrichardburton.com or call (205) 789-9894.
Comments
Post a Comment