Wills

LAST WILL AND TESTAMENT

Wills, formally known as your Last Will and Testament, are documents that allow you to provide instructions for distributing your assets when you pass away. Everyone should have a will as part of their overall estate plan.

KEY PROVISIONS OF WILLS

Wills may contain the following key provisions:

• Names your personal representative (the person in charge of carrying out the will’s instructions)
• Distribution of your assets on a specific or percentage basis
• Guardian for your minor children in the event of your death
• “Pour-over” provisions intended to place assets in trust that were not
• Instructions for establishing trusts upon your death (testamentary trusts)

VALIDITY OF WILLS

Care must be taken in order to ensure the validity of your will upon your death. If not, the court may ignore all or parts of your will. Some reasons for invalid wills include:

• Not properly witnessed
• Invalid provisions (e.g. disinherit for contesting the will)
• Original will cannot be located
• Incapacity of the person making the will
• Undue influence

LIMITATIONS OF WILLS

Although everyone should have a will, wills have certain limitations, including the following:

• Do not avoid probate, which can be time consuming and expensive for your loved ones
• Do not avoid taxes
• Do not protect against your creditors or your loved ones’ creditors
• Limited in allowing you to control the use of your assets (e.g. to be used for grandchildren’s education or to keep assets in your bloodline)
• Do not provide instructions in the event of your incapacity

WILLS SHOULD BE PART OF OVERALL PLAN

The limitations discussed above do not mean you forego having a will. Instead, you need to have a will that can provide the benefits and key provisions wills allow for AND additional documents that address the limitations of wills. Such additional documents include the following:

• Trusts (revocable and/or irrevocable)
• Powers of Attorney
• Living Wills
• Health Care Powers