What Is A Traditional Will?
Traditionally, estate planning involves the creation of a will. A will is a legally binding document that addresses how your assets are distributed upon your death, as well as names an executor who will assist with the administration of your estate. The probate court may supervise the settlement of your estate, and this process can last for 6 months for simple estates, or up to 1 – 2 years for more complex estates.
A will is a flexible tool that can be changed at any time, so long as you are mentally competent. In addition to naming distribution of the estate, your will can also :
- Designate a trust to be established for family members after assets go through probate (this type of trust is known as a testamentary trust, not be confused with a living trust)
- Nominate a guardian
- Direct how debts, taxes and expenses are to be paid
Some advantages of a will are :
- Disputes can be settled through the probate court
- A will is traditionally cheaper than a trust ($200 to $2,000)
- The probate process can lessen the time allowed for creditors to make claims against your estate
Some disadvantages of a will are :
- Lack of privacy : your files can easily be accessed through the records office
- Time : probate can take anywhere between 6 months to 2 years or more until distribution is administered
- Should you become incapacitated, a will does not provide any provisions, and you would require a separate Durable Power of Attorney
By preparing a will, many feel like they have effectively safeguarded their family’s inheritance. Unfortunately, this is oftentimes a false “peace of mind”. A last will and testament outlines your wishes regarding the distribution of your property upon your death, but testamentary documents such as wills usually require probate. By only preparing a will, you might be putting your loved ones through months, or even years, of agony in the probate court.
