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What a Will Does
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.
- 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
- 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.
- 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.
- 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.
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