A will ensures that a person's wishes are fulfilled to the letter after their passing. Properly drafted and witnessed wills provide the legal framework for distributing wealth to family members, settling debts, arranging specific funeral plans, or deciding the fate of mortal remains. While many begin contemplating wills in middle age, misconceptions remain about their necessity.
One common belief is that wills are only necessary for the wealthy. However, experts stress the importance of safeguarding posthumous wishes regardless of economic status. Financial advisers and lawyers recommend that individuals consider drafting a will as soon as they reach the legal age, which is 18 in most US states.
When Should You Draft a Will?
Life events, rather than age, should dictate when a will is drafted. Young adults may not anticipate the need for a will at 18 due to their limited wealth or assets, but significant life events can occur early. According to Arizona-based law firm Hoopes, Adams & Scharber, medical emergencies or unplanned pregnancies are examples of situations that warrant the need for a will.
Having medical and financial powers of attorney is particularly important for young adults. These documents enable parents or designated individuals to make medical decisions or manage financial matters in cases where the young adult is hospitalised or incapacitated. This becomes especially critical if the individual resides away from home for work or education. Occupations involving military service or remote travel also come with heightened risks, further emphasising the importance of a will.
For individuals with chronic or progressive illnesses, drafting a will while in sound mind ensures their wishes are carried out. It's worth noting that wills can be updated as circumstances and relationships evolve, such as changes in assets or welcoming new family members.
Can a Will Be Challenged in Court?
Yes, wills in the US can be contested in court. However, the challenger must have legal standing, an interest in the will, and a valid reason for the dispute. To safeguard assets from creditor claims or court challenges, many people establish trust funds. These ensure assets are distributed to beneficiaries as specified by the trustee.
Trust funds allow for tailored distributions, such as lump sums or staggered payments tied to certain ages or conditions. Revocable trusts, which can be amended or revoked during the creator's lifetime, offer flexibility but remain accessible to creditors. Conversely, irrevocable trusts provide more security, as they cannot be altered once established and are generally shielded from creditors. Additionally, irrevocable trusts offer tax advantages, reducing estate tax liabilities.
Types of Wills
There are several types of wills to consider based on individual circumstances:
- Testamentary Wills: The most common type, signed in the presence of witnesses, minimising disputes if the document is misplaced or hidden.
- Holographic Wills: Created without witnesses, often in emergencies, these are harder to validate as they may raise questions about the mental capacity of the drafter.
- Oral Wills: Generally unreliable and heavily disputed, as spoken words lack legal standing in court.
- Pour-Over Wills: These direct all assets into a trust fund upon death, combining the security of a trust with the clarity of a will.
The Role of an Executor
Choosing an executor is a crucial step in drafting a will. The executor ensures assets are distributed according to your instructions. This individual can be a family member, friend, or lawyer. Importantly, executors have no authority over assets while the person is alive. If an executor is not appointed, the court will designate one to oversee asset distribution.
Wills are not just for the affluent—they are essential tools for ensuring your wishes are respected and your loved ones are provided for. Regardless of your age or financial status, drafting a will offers peace of mind and protection for the future.
