Will

Testamentary Wills

A testamentary will is a tool used by most individuals to transfer their estate upon their death. A testamentary will (generally called a "will") is not enforceable until after the death of the person who made the will. Wills typically do three things:
  1. Transfer Property
  2. Select An Executor
  3. Appoint A Guardian And Trustee For Minor Children

Transfer Property

A will is an easy tool to transfer your property after death to individual(s) or organization(s). Typically, wills are used between spouses to transfer all the estate of the first spouse to die to the surviving spouse. These types of wills are many times called a reciprocal will or simple will. Then upon the death of the surviving spouse, a reciprocal will or simple will typically states that the remaining estate is to be divided among the children.

However, if you have a large estate, many times defined as being in excess of $ 600,000.00, a simple will or reciprocal will may not be the best approach. Estates over $ 600,000.00 begin to incur substantial taxes. Some of the taxes can be avoided through the use of wills, living trusts, and/or gifts that incorporate estate planning tools designed to minimize your estate taxes upon your death.

Though wills do have some drawbacks, they are still viewed by the public and attorneys as one of the more efficient methods of handling an average estate. Some of the disadvantages to using a will affect people who have children from a previous marriage or if they have assets in excess of $ 600,000.00.

Select An Executor

A will is used to select your executor. The executor is the person who will follow through with the wishes of your will and enforce it, if necessary. The executor is paid a very modest fee from the assets of your estate. Most people select their spouse as their executor and nominate a child as their backup executor.

Appoint A Guardian And Trustee For Minor Children

A will is also used by parents with minor children to select a guardian and trustee for their children. A guardian and trustee would become necessary if both parents were to die prior to their youngest child reaching the age of 18. The guardian is the person you select to raise your children. The trustee is the person you select to control the assets and money that you have left your children in your will. Most people use their will to create a trust for minor children so that the assets are protected by the trustee until the minor children reach the age of 18, 22 or older. By protecting the assets in the trust, the children cannot spend their inheritance on frivolous things. Instead, the trustee will use the funds for the needs of your children. Assuming sufficient funds are available, the trustee may also use some of the funds to encourage the children to go to college.

Guiley & Guiley Co., L.P.A. prepare wills for both the simple and complex estate needs of their clients. If you need to make a will, or have your current will updated, please contact Guiley & Guiley Co., L.P.A. to schedule an appointment.