A will may be a more cost-effective estate planning tool than a trust up front. However, wills go through probate, a process that may be costly and time-consuming. You may pay more in the long run with a will-based estate plan than with a trust-based estate plan. Even so, wills are definitely recommended over having no estate plan at all, although trusts offer more benefits than wills.
Wills are basic estate planning tools used to designate assets to particular individuals upon one’s death.
Below is a list of some of the very valuable things a will can do:
The primary purpose of a will is to list each beneficiary and state who gets what and how much they receive.
A will can nominate a guardian for your minor children. However, the probate court is the ultimate deciding authority regarding that appointment.
In cases where a trust might fail to take effect, a will can include language allowing the personal representative of the estate to create a testamentary trust to carry out the grantor’s intent.
Although an individual’s funeral and burial wishes can be stated through an official document, a will may also express the decedent’s wishes for funeral and burial arrangements.
Typically, one of the most important sections in a will is the one appointing a personal representative (Example, the person in charge of carrying out the terms of the will). This is a very important designation and should not be taken lightly. This person will not be able to change the terms of the will; they are only responsible for administering and distributing the estate assets.
While wills can serve as useful estate planning tools, they are not the most effective estate planning technique. Trusts are often overwhelmingly preferred over wills.
