A will is an important legal document that plays a significant role in estate planning. A will allows you to direct the courts as to how to distribute your property and other assets among your family members or friends at the time of your death. It is important to understand how a will works to ensure that your estate is divided according to your wishes.
Function
Every state has specific legislation regarding the distribution of a deceased person's property or assets if she dies intestate, meaning without a will. The function of a will is to allow you to direct the transfer of specific assets you own to individuals or entities, such as a church or other charitable organization. A will also allows you to designate legal guardians for minor children, the executor of your state and a successor custodian for any assets you hold for the benefit of a minor child, such as a custodial savings account.
Types
There are several types of wills and which type you choose depends on how substantial your estate is and the types of wills your state considers to be legal. You may choose a simple will if your estate is uncomplicated; a testamentary trust will, which creates one or more trusts for the distribution of your estate at the time of your death; a holographic or handwritten will; a statutory will; an oral will; or a joint will between the co-owner of your assets.
Requirements
To draft a will, you must meet several basic requirements. You must be at least 18 years of age and be of sound mind--meaning you understand the purpose of a will and the type of assets you own, as well as knowing who you wish to leave those assests to. You must identify an executor of your estate; legal guardians for minor children, if applicable; directives for who is to receive what property; and directives for property not named in the will. You must sign your will and have it witnessed. Each state has different requirements regarding the number and type of witnesses.
Benefits
The primary benefit of having a will is that it allows your property to be distributed according to your wishes, rather than at the state's direction. A will allows you to safeguard your assets and the welfare of your dependents once you are gone. Having a will in place can also potentially minimize the tax liability for your beneficiaries, who may be subject to substantial federal estate taxes, depending on the value of your assets.
Considerations
When drafting a will, it is important to be as specific as possible in your instructions, and follow your state's laws regarding wills exactly. A major drawback of a will is that it can be contested in court after your death, and, if the court finds your will to be invalid, the state has the final determination in how to distribute your assets.
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