Death and Taxes … they are certain!
Death … a topic none of us likes to think about or plan for. However, it is important to do some planning before it is too late. What exactly is a will and do you need one?
What is a will?
A will, or last will and testament, is a legal document designating how to manage your affairs upon your death, including: distribution of property, guardianship of children, funeral arrangements and more. Wills make it easier for your beneficiaries to divide up your belongings and fulfill your final wishes.
Unless your assets are held jointly or pass through beneficiary designation, a will can control your single-name assets. A Will however does not avoid probate.
Why do you need a will?
If you die without a will — the legal term being "intestate" — your property will be distributed according to your state's laws.
In Wisconsin, if you die without a will, your property will be distributed according to state "intestacy" laws. Wisconsin's intestacy law gives your property to your closest relatives, beginning with your spouse and children. If you have neither a spouse nor children, your grandchildren or your parents will get your property. This list continues with increasingly distant relatives, including siblings, grandparents, aunts and uncles, cousins, nieces, and nephews. If the court exhausts this list to find that you have no living relatives by blood or marriage, the state will take your property.
There is a common misconception that having a will allows you to avoid probate. This is not correct. Having a will has no effect on whether or not your estate will go through probate. It simply means that, if there is a probate, your will controls to whom your assets are distributed
Types of wills
There are several different types of wills and your state's legal requirements dictate their validity
Simple or testamentary will. A legal document that specifies how to allocate your property upon your death.
Handwritten or holographic will. A will that has not been witnessed or notarized, but is written by hand. It may not be valid in every state. For example: a soldier scribbles his/her wishes on pen and paper during a dangerous situation.
Oral or nuncupative will. A will verbally expressed to witnesses, rather than written down. It may not be valid by state. For example: A terminally ill patient who is unable to write and instead states his/her wishes aloud.
Pour-over will. A legal instrument used alongside a living trust as a contingency. It "pours" all estate assets over to the living trust in case assets were not transferred beforehand. For example: An asset wasn't properly titled to the trust, but the pour-over will takes care of moving it over.
Living will. Unrelated to any of the wills defined above, a living will outlines your preferences for medical care in the event you are unable to speak for yourself.
Considerations when making your will
Despite what you may think, every adult needs a will, regardless of age, wealth or family circumstance. It's not hard to create a will, but there are many details to consider during the process.
If you have questions or are in need of any legal help, contact us today. Please contact us by text or phone at (414) 775-7445 or email at laura@jlfwisconsin.com anytime.
*Any articles in the Libra or posted by Jones Law Firm LLC are not legal advice for a particular client or situation. Further no attorney-client relationship is intended or created with this post.*
