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 Why is a will important? A will is important because it allows you to:
How can a will save money for your estate? Well-drawn provisions can reduce estate and inheritance taxes. You also may eliminate the cost of a bond for your personal representative by including a simple clause stating that no bond is required. Clear provisions for minor children help avoid an often costly and clumsy court-supervised guardianship. If your will was written while you lived in another state, is it legal in Wisconsin? In most cases, yes. Such a will is valid in Wisconsin if it complies with the laws of 1) Wisconsin, 2) the place where it was executed, or 3) the place where you lived when the will was executed. However, Wisconsin's marital property statutes may affect your bequests. If your will was executed in a state that doesn't have community (marital) property laws, you may wish to have the will reviewed to make sure it will still achieve your intended result. Can you keep your spouse or children from inheriting anything with a will? You can change the way the law would distribute your property, but you may not be able to completely prevent your spouse or children from inheriting. The Wisconsin Marital Property Act gives spouses a one-half interest in certain assets and income accumulated during the marriage. State law also can give a surviving spouse the right to elect to receive a portion of the deceased spouse's estate and to select certain items of personal property. Furthermore, a court may award a surviving spouse an allowance for support from the estate. Spouses may waive the right to be included in each other's estate if they both sign a properly drawn marital property agreement. In most cases, you can use a will to prevent children from inheriting your property. However, in some instances, the court may order an allowance for minor children to fulfill the parent's duty to support. Will provisions disinheriting the spouse or child may result in court challenges, so careful drafting is important. What is a trust created by a will? A trust is an arrangement in which one party holds property for the benefit of another. You may use your will to create a trust upon your death. Such trust often are used to provide income to spouses or to hold property unitl minor children become adults. The trustee, which holds the property, often is a bank. The trustee is responsible for protecting the property, paying out the income earned and terminating the trust as the will directs. A trust can help protect young beneficiaries from making unwise investment decisions or wasteful spending. A trust can also reduce, or in some cases, eliminate estate and inheritance taxes. Can you create a trust while you're alive that will control your property ouside the reach of your will? Yes. A Living (inter vivos) Trust can be used to control your property during your lifetime. Its terms may allow the trust to continue to control the property after your death. You would need to sign documents giving your lifetime that property is generally treated the same as if you still owned it. A living trust can have some advantages and some disadvantages. On the positive side, property held in the trust may not be subject to probate procedures. On the other hand, buying, handling and selling assets may be more cumbersome. You may need to consult an attorney to understand the effect of a Living Trust on your property. What is a durable power of attorney? A power of attorney authorizes another person to act for you. That person is called your agent. A durable power of attorney allows that person to act even if you become incompetent. You can create a durable power that will be effective when you sign it or when two physicians state, in writing, that you are not capable of handling your affairs. This second option is called a "springing" power. Name only someone you trust absolutely. What about health-care decisions? Wisconsin law allows you to create a durable power of attorney for health care. Under this law, you give your agent the authority to make healthcare decisions for you when you are unable to make them yourself. There are specific requirements about how the power of attorney for health care can be executed, just as there are with a will. In addition, the law restricts who can be a witness to this document. Disclaimer: This summary offers basic legal information only and does not offer legal advice. If you have legal problems, please seek legal advise; only an attorney can advise you on how the law applies to the specific facts of your situation and in your location. Top |
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