Making your loved ones decide how your assets and property will be divided after your death is not prudent. That is why creating a will is a major part of the estate planning process. Thankfully, you can hire wills lawyers to lead you through the estate planning process without leaving room for discomfort and overwhelmingness.
But before you embark on the process of creating a will, you need to be aware of its different types. The best will always thoroughly look into your current financial situation and protect the future of your assets. So, scroll through this article to begin exploring details about the various types of wills.
As the name indicates, this is the simplest option among the various types of wills. This type of legal document eliminates all complexities by stating the condition of your personal belongings after your death. Writing a simple will on a single piece of paper will make it legally enforceable.
A simple will is the best way to have some preferences about your asset distribution in writing. These wills usually specify the executor and the beneficiaries. You can also mention the guardians of your children in a simple will.
Moreover, a simple will is great for specifying the type of funeral you want. Remember that you can destroy a simple will anytime you want and create a new one.
A complex will include more sophisticated instructions related to asset distribution. These wills come with a provision of the right of occupation for a beneficiary to remain in the deceased’s property for their lifetime. After the death of that beneficiary, the other beneficiaries of the will maker can occupy the residence.
A complex will can also come with special provisions for the individual’s children from a past relationship. Special provisions can also be included for the will maker’s children from multiple relationships. In most cases, complex wills are drawn by individuals with more than one marriage, leading to complex family dynamics related to the distribution of property, business, and more.
The best estate lawyers in Perth advise individuals with substantial assets to go ahead with a trust will. These types of wills guarantee ongoing protection and management of your assets. When you create a trust, you will have to set someone up as the trustee.
That individual will be responsible for dividing your assets as per your specific instructions. A minor beneficiary is likely to receive great support after your death if you create a trust will. Moreover, trust wills are ideal for people with complex family dynamics.
While learning about the various types of wills, you should also gain knowledge about a testamentary trust. These types of trusts included within your will become active after your death. You will usually be recommended to create testamentary trust when you have specific preferences regarding when a particular beneficiary should receive their assets.
For instance, you might want your grandchild to receive a lump sum of cash on their 20th birthday. But if you pass away before they turn 20, the testamentary trust will help them get the asset. Individuals often include land and investments in a testamentary trust.
Mutual wills are usually drawn between partners or spouses. After creating a mutual will, partners or spouses cannot change them without one another’s consent. Mutual wills are extremely common between spouses with children from a past marriage.
A mutual will helps establish that a part of the total assets goes to the surviving spouse. The children of the deceased individual also become eligible for one share of the assets. A mutual will also comes with a legally binding contract regarding its implementation when one of the partners passes away.
A living will serve as an advanced care directive for a time when you will no longer be eligible to make your medical decisions. It will provide information regarding your beliefs, values, and goals related to your health. The purpose of a living will is to make your medical decisions known as long as you have a sound mind.
You can also appoint a decision-maker in your living will. This appointed individual will be responsible for making all decisions related to your health when you are no longer capable of doing it by yourself. The decision-maker that you appoint in your living will should be someone you trust to abide by your wishes.
A mirror will is created by couples who want to have identical terms in their individual wills. These types of wills are used by couples who only have children together. If you have children from a past marriage, a mirror will won’t be suitable for you.
When you have a specially abled beneficiary, they might not be capable of managing the gift they receive from your will. In that case, you can always set up a protective or special disability trust for them in your will. This type of trust will provide ample benefits to the specially-abled person, but they won’t have control over the gift.
Instead, you will have to appoint a trustee to manage that gift on behalf of the vulnerable beneficiary. For a specially-abled beneficiary, these types of trusts can help pay for their medical care, accommodation costs, and other expenses.
A protective or special disability trust can also be created for beneficiaries with a drug, alcohol, or gambling problem. In fact, you can also set up these trusts for spendthrift beneficiaries who don’t know how to manage their finances efficiently.
Contact Deceased Estate Lawyers for best legal support. We guide you in creating a legally enforceable will as per your requirements. We will provide you with knowledge about the different versions of wills and assess your financial situation to figure out which type of will would be the most effective for you. So, contact us and eliminate all struggles in creating a will for the effective distribution of your assets.