Dissecting the Contents of a Will

March 22, 2021

 

Understanding the Basics

Typically, a will begins with an introductory clause, identifying yourself along with where you reside (city, state, county, etc.). It should also state that this is your official will and replaces any previous wills.

After the introductory clause, a will generally explains how your debts and funeral expenses are to be paid. Years ago, funeral expenses were often paid out of the share of assets going to an individual’s children, instead of the amount passing to his or her spouse under the unlimited marital deduction. However, now that the inflation-adjusted federal gift and estate tax exemption has increased to $11.7 million for 2021, this may not be as critical as before.

A will may also be used to name a guardian for minor children. To be on the safe side, name a backup in case your initial choice is unable or unwilling to serve as guardian or predeceases you.

Making Specific Bequests

One of the major sections of your will — and the one that usually requires the most introspection — divides up your remaining assets. Outside of your residuary estate, you’ll likely want to make specific bequests of tangible personal property to designated beneficiaries.

If you’re using a trust to transfer property, make sure you identify the property that remains outside the trust, such as furniture and electronic devices. Typically, these items aren’t suitable for inclusion in a trust. If your estate includes real estate, include detailed information about each property and identify the specific beneficiaries.

Finally, most wills contain a residuary clause. As a result, assets that aren’t otherwise accounted for go to the named beneficiaries.

Addressing Estate Taxes

The next section of the will may address estate taxes. Remember that this isn’t necessarily limited to federal estate tax; it can also apply to state death taxes. You might arrange to have any estate taxes paid out of the residuary estate that remains after assets have been allocated to your spouse.

Naming an Executor

Toward the end of the will, the executor is named. This is usually a relative or professional who’s responsible for administering the will. Of course, the executor should be a reputable person whom you trust. Also, include a successor executor if the first choice is unable to perform these duties. Frequently, a professional is used in this backup capacity.

Turn to the Professionals

Regardless of your age, health and net worth, if you want to have a say in what happens to your children and your wealth after you’re gone, you need a will. Contact your attorney for tax-saving estate strategies and to draft your Will. 

Contact Your Estate Planning Attorney to Discuss Your Estate Plan.

Contact Your Estate Planning Attorney to Discuss Your Estate Plan.

Bringing clarity to your financial world.™

Bringing clarity to your financial world.™