The estate planning process can feel overwhelming and, at times - uncomfortable. Thinking about where your things will go after you die is not an easy task but, unfortunately, needs to be done to protect your assets and loved ones.
One of the first steps in estate planning is making a will. But before you can do that, it's important to understand the different types of Wills. Choosing the right will for your needs is important for protecting your estate.
Types of Wills
This article will go through the five most common types of wills. Each has its benefits that depend on the person creating the will. However, the best Will is always the one that suits your current situation and the future of your estate.
1. Living Will
A living will is also known as an advanced care directive. It is a formal document that outlines your preferences for when you no longer can make medical decisions for yourself.
This type of will allows you to outline decisions regarding your health that align with your beliefs, values and goals. With your health, it's hard to predict the future, so a living will ensure your medical wishes are known while you're still sound mind.
They also allow you to appoint a decision-maker that half to act on your behalf if you lose the capacity to make your decisions. This decision-maker should be someone you trust and will uphold your wishes.
2. Testamentary Trust
Testamentary Trust is written inside your Will and starts when you pass away. The purpose of this trust is to protect the access and distribution of your assets for their respective beneficiaries.
For example, if you want to give a lump of cash to a beneficiary when they turn 25 but you pass away before their 25th birthday, the testamentary trust will ensure they still get the asset when they turn 25.
This type of will is a good option if you want to leave specific instructions for who will receive assets and when they will receive them. For example, you can include investments, land, cash and valuable belongings in a testamentary trust.
3. Simple Will
A simple will is just that - simple! This type of will is a document that outlines what would happen to your personal belongings when you die. You can write a simple will on a piece of paper, and it's still legally valid.
Typically a simple will can include who you want to appoint as your executor, the beneficiaries of your estate, guardians for children and what sort of funeral you might want. You can revoke it any time by destroying it and making a new one.
To help guarantee that your belongings go to your loved ones after you pass away, you need a will. To help make sure there's at least something in writing about your preferences, a simple will is a good option.
4. Mutual Will
Mutual wills are between spouses or partners and come with a contract. The contract states that each partner is legally bound not to change their will without each other's consent.
These are common when spouses have children from a previous marriage they want to leave assets. Therefore, a mutual will helps to ensure that the estate goes to the surviving spouse and a set gift goes to the deceased's children.
When spouses or partners create a mutual will, they will each have their own will plus a legally binding contract that specifies the rules of their mutual wills when one of them passes away.
5. Online Will
Online wills are a great option for those who want to start planning their estate with easy access to making changes to their will as their assets and family continue to grow. Willed's online will platform makes it easy to start writing your will.
You can create your will online in a simple step by step process, which is then verified by will and estate experts. When you're done, you can download your will instantly and make updates as you need.
Online wills are a safe and convenient option for those who do almost everything online. They are legally valid, contain all the necessary components, and are suitable for larger estates.
Now that you understand the different types of wills, it’s time to start writing your will online. Again, willed makes the process simple and straightforward.
We provide all of the necessary tools and resources to create a will that meets your specific needs. Plus, our team is always available to help if you have any questions along the way.
Start creating your will today, and rest easy knowing your loved ones are taken care of if something happens to you.