When planning for your future, you want to ensure that all of your wishes are clearly outlined. Life is unpredictable, and there's no way of knowing when the end might come. If you want to ensure your loved ones remain in peace after you're gone, it's essential to put together a will. This article discusses three types of wills you need to know about.
1. Joint Will
A joint will is a will that multiple people share. It's beneficial for couples, families, or business partners who want to share their estate among themselves without involving the court system. Joint wills make it easy to distribute assets since there are no arguments over how many debts and expenses have been paid off on an asset. Rather than arguing about who gets what, the co-owners of a joint will can simply write that they are giving items to their partners.
Although two or more people can write this will, it should have the same content on how each person wants their estate distributed when they're deceased. The wills do not have to contain similar terms or conditions if one party names another as a beneficiary in both documents.
These wills are also useful if one party has a child from another relationship and wants to ensure that their other half is provided for. It will entitle the surviving spouse to receive all property held in both names and everything else not specified, such as personal possessions or money earned after death.
2. Living Will
A living will is a document that allows an individual to provide advanced instructions about their health care and end-of-life decisions. It may include the types of treatments you do or do not want to receive and whether or not your life should be prolonged through artificial means, such as breathing machines and feeding tubes.
A living will should be signed by witnesses and given validity during one's lifetime so that their wishes are respected, even after death. It also requires having someone with power of attorney over health care to make financial and legal decisions if something happens while you're away from home.
3. Testamentary Trust Will
This will allows you to name a trustee and determine the distribution of your assets after death. The trust will be activated upon your passing if you've named beneficiaries in it. It's an excellent option if you want to leave money or property for children who are not yet adults. Since it's not active until after you die, there are no tax consequences when preparing and executing it. It is also helpful if someone can't handle their finances because of a mental illness and should be created while that person still has the mental capacity to understand what they're signing.
Wills are vital to ensure your hard-earned assets go where you want them. You never know when you may pass away, so it's best to ensure everything is in order before the unfortunate occurs. Contact a living will service, such as Wright Law Offices, PLLC, to learn more.