Everyone goes through life with pretty much the same issues…they just look different based on each person’s individual circumstances. There are money issues, health issues, and control of your assets. Regardless of how large your estate might be, these three issues need to be dealt with prior to death and/or disability. Having a Last Will and Testament allows you to address each of these three issues.
Associated with handling these three issues are three primary documents. They are at the core of estate planning for people of modest means and people of great wealth to protect. The three primary areas and documents include a durable general power of attorney, the durable health care power of attorney, and the last will and testament.
This is the subject of an article from The Daily News that asks “How Useful is a Last Will and Testament?” According to the article, a will is an individual’s post-mortem (death) plan to distribute one’s assets. They are almost always . written down. There have been instances of verbal wills, but these are very unusual and risky. A will can be used to dispose of nearly anything which the person, known as the “testator” (if male) or “testatrix,” (if female), owns or has an ownership interest.
Any person who is legally competent can sign a will, provided they are aware of who they are, what assets they own and to whom they want to give those assets. In Tennessee, for example, a will is generally valid if it complies with the laws of the state, the laws of the state it was drafted in or the last state where the testator legally resided when they died. Estate laws vary from state to state so it advisable to have your will prepared by an estate planning attorney in the state upon which you reside the majority of the year.
Wills are used to transfer tangible property, real estate, money, ownership interests in businesses, stocks, and other entities. While most beneficiaries are humans, wills can be used to name charities, trusts, businesses, and animals as beneficiaries. For animals, some people have “pet trusts” created to protect their pets if their pet outlives them.
One key benefit of having a will is that it gives you the ability to decide for yourself who should inherit your possessions. If you die without a will, the state’s laws determine what happens to your possessions. This process is known as dying “intestate.” Anything you own that does not have a beneficiary designation or surviving joint owner will be passed automatically to your legal next of kin.
If you don’t have a will, aren’t married, and don’t have any children, your estate will be distributed to your next of kin.
If you have young children and die without a will, the court will appoint a guardian to rear your children. It may not be the person you would have chosen but the courts have no other choice than to find the person they feel would be most appropriate. If you have young children, you should have a will prepared without delay. The primary purpose will be to name a guardian and a person to be in charge of managing your money that is left for your children.
One great part of a will is that it may be revoked, changed, or amended at any time, if the person is legally competent. However, because it is a legal document, it should be created with an estate planning attorney to make sure it complies with your state’s laws and is created to accurately and independently reflect your wishes.