Will
If you die without a legal will in place, a probate court will decide how to distribute your assets and who will become the guardian of your minor children (if applicable) based on state laws. Generally, your personal property will go to your surviving spouse and children. A will helps you take control of your estate planning and can prevent your loved ones from having to go through a complex and lengthy probate process.
What is a Will?
A will, or last will and testament, is a legal document that dictates the designated beneficiaries of your estate after your death and how to divide your property among them. Your estate refers to the sum of your assets—including property and possessions—at the time of your death, minus any debts or liabilities.
In addition to asset distribution, a will can also designate guardians for minor children and an executor of your estate. In some states, designating an independent executor allows your loved ones to avoid settling your estate with court supervision. Instead, it's the executor's job to ensure your wishes are met per your will.
In short, a will does do the following:
- Designate beneficiaries of your estate
- Determine the distribution of your assets
- Name the guardian(s) of minor children
- Assign an executor of your estate
A will doesn’t govern non-probate property—assets with titles or named beneficiaries—such as the following
- Joint property
- Bank accounts
- Life insurance
- Retirement accounts
- Investment accounts
For more information on types of wills—such as joint wills or oral wills—check out this estate planning guide.
FAQs
What makes a will valid?
That depends on state laws. However, most states require valid wills and other estate planning documents to have the following signatures:
- The testator (person making the will) while they are sound of mind
- Two witnesses who are competent adults and not a beneficiary or spouse
- A notary public
Are wills legally binding?
Yes, a will is typically legally binding as long as it's valid based on state law and doesn't contradict an existing title, contract, or existing beneficiary designation.
Can you write your own will?
Yes, you're legally allowed to write a will yourself. However, it's wise to seek legal and tax advice if you will isn't straightforward. Consulting an estate-planning attorney may cost more money upfront, but it could save your loved ones a lot of time, money, and stress in the future by helping ensure a smooth probate process.
What is the difference between a will and a trust?
In short, the difference between a will and a trust is that a will dictates how to distribute your assets after your death, while a trust manages assets during your lifetime. Trusts can also designate beneficiaries and outline what circumstances trigger asset distribution, which could potentially avoid probate and offer more control and flexibility. However, they can't designate a guardian for minor children.