Wills and Trusts

You may find that over your lifetime you accrue a wide variety of assets. These assets can include property, land, company shares, businesses, cash, bank accounts, artwork, jewelry, cars and basically anything else that you own. Obviously, whilst you are alive, these material things are put to good use.
However, what happens to them after you die?

Well, that is basically up to you – they are your assets and you decide who gets them upon your death.

This is where a will comes in:
A will is a simple document that outlines what your assets are and whom you want them to go to. This is a legal document, which will be used in probate after your demise to ensure that your assets go to the rightful beneficiaries. A will can be made by anybody over the age of eighteen that is of sound mind, but must be witnessed. The state law will determine how many witnesses you need, and you must ensure that the witnesses are not beneficiaries of the will in any way.

Many people never get around to making a will, and when they die the courts end up dealing with any assets, which are then distributed according to the state laws.
Normally an executor is appointed, and this person will deal with the disbursement of assets under the supervision of the probate court. If there is no executor, the probate court will appoint an estate administrator to deal with the distribution of assets. If you have no beneficiaries or relation and have not made a will, it is possible that all of your assets will be claimed by the state.

When you make a will you will need to list all of your assets. You should also list any outstanding debts that you have. You can then go on to make a list of all beneficiaries, and decide who should receive what. All of the outstanding debts on your will are paid off upon your debt, and the remaining assets are distributed in accordance to your wishes. If there are any items not specifically listed on your will, they are distributed by the courts in accordance to the law of the state. If you don’t wish for this to happen, you should include a clause that leaves the remainder of your estate to a specific person of your choice. You should also list your beneficiaries by full name and relationship to avoid any confusion when it comes to the reading of the will and the disbursement of assets.

Should any circumstances in your life change, such as the birth of a grandchild or child or the acquisition of new assets, you may wish to change your will. It is important that you ensure that your old will is destroyed once you have made up a new document and had it witnessed. Your will is a document that will be of paramount importance after your death, particularly if you have a lot of material assets. It is therefore important that you keep it in a safe place, and let trusted family members and your lawyer know where it can be found.

If you have any assets that have contractual beneficiaries, such as a house with a joint mortgage or a joint bank account, these would not be dealt with through a will because they already have a beneficiary, which is the joint owner. However, all other assets should be listed on the document to ensure that they go to the desired beneficiary after your death.

Completing a living will, otherwise known as an Advance Health Care Directive (AHCD), is important for all individuals over 18 years of age as they may unexpectedly be in a position where they cannot speak for themselves, such as an accident or severe illness. For more information on when and how to make these important medical decisions, click here.