There is an old saying that everything in life is avoidable except “death and taxes.” That statement is only partly true these days. To a great extent, thoughtful estate planning can often reduce or eliminate taxes through the use of devices such as lifetime tax-exempt giving, trusts, etc. And while no one has yet determined a method of avoiding death, it is now possible to ease many of the legal and decision-making problems associated with it.
These days there is a lot of discussion about estate planning, living trusts, wills, and related subjects. But there seem to be few sources of readily available information for public use on these issues. The purpose of this post and the four follow-up blog entries is to share with the readers some basic concepts on estate planning in the hope of making the subject more familiar.
THE WILL (ALSO CALLED “LAST WILL AND TESTAMENT”)
A “will” is a legal document which determines how a person’s property will be distributed at death. Wills must be signed (also called “executed”) in a very specific legal way. Wills do not become effective until a person dies and may be changed many times during a person’s life. However, the methods of revoking or changing wills are very few and such things can only be accomplished by following strict law. Persons having any doubt about the proper way to create, change or revoke a will, should consult with an attorney to make certain that the procedure is properly performed.
Without a will, state law determines how a person’s property is distributed, which is one reason many people feel the need to create wills during their lifetimes.
Wills can also perform certain other functions, such as the designation of a preferred person to take care of minor children.
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