How Do You Know if You Need a Simple Will or a Complex Will?

When we hear the word “Will”, it’s usually a simple Will that comes to mind. Or, rather, a Will that has all the basic elements required to make it, well, a Will! This type of legal document involves provisions for executors to do everything needed to make sure your beneficiaries get what they are entitled to under the Will. A simple Will may become a complex one due to the level of detail that someone may want to include in the documents, or “complicated” life factors. 

Let’s break it down a bit further to see what exactly separates simple Wills from complex ones.

A Simple Will

1. What makes a Will “simple”? 

Simply put, this Will is written in the simplest possible way. It tends to be much shorter than a complex Will, and usually leaves the rest, remainder and residue of a person’s estate to only one or a handful of people. 

For example, a simple Will may leave a single spouse the whole estate, or split an even sum between the testator’s children. If a testator has three children, they may be written into the WIll to each receive a one-third share in the estate. 

2. What information is included in it?

A simple will includes the bare minimum required to establish and split the estate. Its instructions are clear and straightforward as to who gets what and when. This is generally easier to do when there are minimal assets, or only a small family, whom the testator may want to leave everything to. There are, however, a number of vital things you need to consider before putting the simple Will  together, such as:

• Who you would like to name as the Executor of your estate

• Who you would like to appoint as a legal guardian to any underage children you may have

• All your assets and liabilities, including assets and liabilities owned jointly with others

• Who will be the beneficiaries of those assets and liabilities, or generally inherit your estate, and how much of it

• Who gets the estate if these beneficiaries are unable to accept

• Whether there will be any charitable donations or gifts left as bequests

• Who will look after any pets after you pass

With all that territory covered, a simple Will is almost starting to look not so simple…

3. Who needs one?

A simple Will is often used by people who want to leave their estate to their spouse and children, and generally leaves lump sum payments to these beneficiaries. A simple Will generally indicates that the estate is less likely to be contested. In other words, it is less likely that there will be multiple people with competing interests who may feel they are entitled to a portion of the estate and therefore bring about a family provision claim.

Of course, a simple Will can most definitely still do the job of distributing your estate to your beneficiaries - especially if you foresee that it can be a *relatively* drama-free process. However, a complex Will may be needed for other certain benefits.

A Complex Will

1. What makes a Will “complex”? 

One way to think of it is as a simple Will, but with a few extra bells and whistles, such as multiple gifts or different distributions in special circumstances. Complex wills also come into play by way of a Testamentary Trust or a Disability Trust Will (which fall under the complex category). 

In contrast to a simple Will, a complex Will provides the testator with much more in-depth ways to distribute the estate. But note that owning a business or having a previous spouse does not necessarily make a Will complex. Some circumstances in which a Will can become more complex might include:

• Complex financial and family affairs being administered in a manner that benefits beneficiaries upon their passing with the least amount of tax burden, for example, capital gains tax

• Different asset classes, or assets being held in different countries and included under separate Wills in those countries

• An intention to obtain more complex assets in the future

• Complex business or a business that may continue to operate after a person’s death

• An intention to create a charitable trust

• An intention to establish a special disability trust or a testamentary trust for minor children or other vulnerable beneficiaries

• A wish to create complex conditional bequests

• A desire to make less traditional choices, such as provision for a former de facto or marital spouse and/or lack of provision for close family members, such as current spouse or children

• Where are are concerns about beneficiaries you would like to leave out of a Will

2. What information is included in it?

Complex Wills generally require a lot more information and a lot more directions than simple Wills. Basically, an expanded simple Will. A complex Will might be expected to answer the questions of:

• How is the will split between children from all marriages?

• If any of these children have disabilities, how will they be cared for?

• Who gets control of any businesses or corporations?

• Who gets any stocks?

• Are there any gifts to be awarded from the estate?

A notable inclusion of complex Wills is that you can set up certain conditions by which the estate is split. You’re given a lot more freedom to spread out your estate in specific ways. You don’t just need to allocate lump sums to your family: you can spread the love a bit more by giving whatever you want to whoever you want!

3. Who needs one?

Complex Wills are more relevant for people with large estates to give away and many people distribute the estate across. A complex Will may be appropriate for you if: 

• You own valuable assets where estate taxes will apply

• You want to establish a special disability trust for a disabled child

• You have a previous spouse or multiple marriages and with multiple children

• Your beneficiary is likely to receive $500,000 or more (lucky them!)

• You have overseas assets

• You expect to add to your assets

• You run a large company

• You want to set up a trust that allows your children to receive a certain amount of money after a certain age

Wrap up 

Before you go ahead and start the Will-making process, it’s important to know which type of Will applies to your situation and how they differ. This helps you rest assured that your loved ones are properly provided for after you pass. Willed makes this dead easy by giving you access to in-house simple Will experts as well as lawyers experienced in drafting complex Wills. Once you decide it’s simple or complex, we can help with the rest!

If you found this helpful, you may benefit from reading our guide on Testamentary Trusts.