What is a Will? Definition, Types & More

Creating a will is a crucial step in ensuring that your wishes are honored after you pass away. It helps secure the proper distribution of your estate and ensures that your loved ones are cared for.  Before you begin with the will-writing process, you should have a clear understanding of it. This blog is your all-you-need-to-know guide about the will definition, its purpose, different types, the steps to writing it, and more.  Whether it’s your first time with estate planning or you’re looking to update an existing will, read along for all the helpful info you need. 

Key takeaway

• A will is a legally binding document that conveys your wishes, clarifies asset distribution, and provides peace of mind to your loved ones.
• Different types of wills include last wills, living wills, and testamentary trusts, each serving unique purposes in estate planning.
• The process involves listing assets, choosing beneficiaries, appointing an executor, and ensuring legal requirements are met for validity.
• Life changes, such as marriage or the birth of children, necessitate regular reviews and updates to ensure your will remains relevant.

All about wills – definition, purpose, types, planning, and more

A will is an important part of your estate plan, so having a thorough understanding of it can really be helpful. Here is all you need to know about the will definition, importance, regulations, types, and more. 

What is a will?

A will is a legal document that outlines how a person's assets and affairs should be managed and distributed after their death. It specifies beneficiaries, appoints an executor to oversee the estate, and can also include instructions for guardianship of minor children. 

“The purpose of a will is to reflect your wishes about your estate and its distribution among loved ones.” – American Bar Association.

A will helps minimize disputes among heirs, reduces the stress and confusion for loved ones, and streamlines the estate settlement process. Ultimately, it provides peace of mind for both the testator and their family.

Why do you need a will?

Many people believe that only the wealthy need a will, but this is a misconception. A will ensures that your property is distributed according to your wishes and that your loved ones are cared for in your absence. Here are the benefits and importance of writing a will:

• Clarifies your wishes: having a will ensures that your belongings go to the people or organizations you choose. As a result, it prevents confusion and potential disputes among family members after your death.
• Ensures care for children: If you have minor children, a will enables you to designate guardians who will be responsible for their care in the event of your passing. This decision ensures that your children are raised by someone you trust.
• Streamlines the estate settlement process: A will simplifies the probate process, making it easier and faster for your loved ones to settle your affairs. It provides clear instructions for your executor and reduces the likelihood of complications.
• Faster access to assets: With a will in place, your beneficiaries can gain quicker access to your assets. This can be especially important in times of financial need, allowing them to manage expenses without unnecessary delays.
• Tax planning: A well-structured will can help in tax planning, potentially minimizing estate taxes and maximizing the value of your estate for your heirs. By outlining specific bequests and charitable donations, you can strategically reduce the tax burden on your estate.
• Protects your legacy: how your legacy should be preserved, whether through charitable donations, educational funds, or other meaningful contributions that reflect your values and priorities.

A will is a vital tool for effective estate planning as it provides clarity, protection, and peace of mind for you and your family. Don’t wait until it’s too late - take the necessary steps to create a will that reflects your wishes today. If you need help writing a will, feel free to sign up on our app at any time.

What does a will cover?

A will is a comprehensive legal document that addresses various aspects of your estate and personal wishes. Here are the key elements that a will usually covers:

• Asset distribution: According to the will definition, it aims to specify how your assets - such as real estate, bank accounts, investments, personal belongings, and other valuables - will be distributed among your beneficiaries. You can designate specific items to particular individuals or outline how your estate should be divided.
• Designating Beneficiaries: A will also helps you designate who inherits your assets after your death. It provides clear instructions on the distribution of your estate, ensuring that your wishes regarding asset allocation are honored. Beneficiaries can include family members, friends, charities, organizations, and even pets, as you can set aside funds for their care.
• Appointment of an executor: A will allows you to appoint an executor to manage your estate after your death. This individual will ensure that your wishes are carried out, debts are settled, and assets are distributed according to your instructions.
• Guardianship of minor children: A will also enable you to designate guardians who will care for your minor children in the event of your passing. This is a critical decision that ensures your children are raised by someone you trust.
• Funeral and burial instructions: A will can include your preferences for funeral arrangements, burial, or cremation. By outlining your wishes, you can relieve your loved ones of the burden of making these decisions during a difficult time.
• Charitable bequests: A will also allows you to leave a portion of your estate to charitable organizations or causes that are important to you. This can be a meaningful way to support your community and leave a lasting legacy.
• Contingent beneficiaries: You can specify contingent beneficiaries in your will, which are individuals who will inherit your assets if your primary beneficiaries are unable to do so. This ensures that your assets are distributed according to your wishes, even in unforeseen circumstances.
• Personal messages: While not legally binding, many people choose to include personal messages or letters in their wills. These can express sentiments to loved ones, provide guidance, or share reflections on your life and values.

A will covers a wide range of important aspects related to your estate and personal wishes. Therefore, taking the time to create a comprehensive will is a vital step in effective estate planning.

What a will doesn’t cover?

While a will is a crucial component of estate planning, it does have limitations and does not cover every aspect of your financial and personal affairs. Here are some key areas that a will does not address:

• Jointly owned assets: Assets that are jointly owned by another person, such as a spouse or partner, usually pass directly to the surviving owner upon death, bypassing the will. This includes joint bank accounts, real estate, and other shared property.
• Life insurance proceeds: The proceeds from life insurance policies are paid directly to the designated beneficiaries and do not form part of your estate. This means that these funds will not be distributed according to your will.
• Transfer-on-death accounts: Accounts that have a transfer-on-death (TOD) designation allow assets to pass directly to the named beneficiaries without going through probate. This includes certain bank accounts and investment accounts, which are not governed by the instructions in your will.
• Elective-share laws: In some jurisdictions, a surviving spouse may have the right to claim a portion of the deceased spouse's estate, regardless of the provisions in the will. This means that even if your will specifies a different distribution, the surviving spouse may still be entitled to an elective share, which can complicate the estate settlement process.
• Debts and liabilities: A will does not eliminate your debts. Outstanding obligations, such as mortgages, credit card balances, and loans, must be settled from your estate before any assets are distributed to beneficiaries. Addressing debts proactively ensures a smoother transition of assets, reduces potential financial complications for your heirs, and helps them retain more of their inheritance.
• Retirement accounts: A will does not cover the distribution of 401(k)s and other retirement accounts, as these assets are governed by their own beneficiary designations. It’s recommended to regularly review and update these designations to align with your estate planning goals.
  Guardianship for adult dependents: A will can appoint guardians for minor children, but it does not cover arrangements for adult dependents or individuals with special needs. Separate legal documents may be necessary to address their care and support.

Understanding what a will does not address can help you create a more comprehensive estate plan that ensures your wishes are honored and your loved ones are taken care of. Consider consulting with an estate planning professional or our digital estate assistant, Alice, to ensure all aspects of your estate are properly managed.

How much does a will cost?

The cost of creating a will varies based on the method you choose. You can create one for free using online templates, while paid options can range from a few hundred dollars. Hiring an attorney for personalized assistance can be more expensive. Click here to find out how much it costs to create a will using different methods.

Did you know?

BetterEstate is an online estate planning platform that helps you create your will online in minutes at just a fraction of the charges you’d pay to an attorney.

Free online templates may seem a budget-friendly option but they only deliver generic results. On the other hand, hiring an expensive lawyer usually causes you to end up signing up for a time-consuming process. So, what’s the best way to do it? Well, we have the solution you need. BetterEstate uses cutting-edge AI technology to provide you with lawyer-grade estate planning services at relatively affordable rates. You get to sign up for free, consult our digital estate assistant, and only pay if you wish to proceed.

Who is involved in will planning?

When planning involves several key individuals, each of them has specific responsibilities or rights. These include:

• A testator
• An Executor
• Beneficiaries
• Witnesses

Knowing about these key legal terms is important to ensure your will is executed according to your wishes. This understanding also ensures a smoother transition and minimizes potential conflicts.

Who is a testator of a will?

A testator is an individual who creates a will, outlining their wishes regarding the distribution of their assets and affairs after their death. This person has the legal capacity to make decisions about their estate and is responsible for specifying beneficiaries, appointing an executor, and detailing any specific instructions for managing their estate. The testator's intentions guide the entire estate planning process.

Who is an executor of a will?

An executor is appointed by the testator to manage and administer their estate after their death. This person is responsible for ensuring that the testator's wishes are carried out as mentioned in the will. Duties include gathering and valuing assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries. The executor plays a crucial role in the probate process and must act in the best interests of the estate and its beneficiaries.

Who are the beneficiaries?

Beneficiaries are individuals designated in a will to receive assets, property, or benefits from the deceased's estate. They can include family members, friends, charities, or organizations. The testator specifies who will inherit what and ensures their preferences are executed properly after their death.

Who are witnesses of a will?

Witnesses of a will are individuals who observe the testator signing the document, confirming its authenticity and the testator's intent. Generally, there are at least two witnesses required, depending on state laws. They must be impartial, meaning they should not be beneficiaries of the will. Their signatures provide legal validation and help ensure the will's enforceability during probate.

Who can witness my will?

Anyone who is at least 18 years old and of sound mind can witness your will. However, witnesses should not be beneficiaries or related to beneficiaries. They shouldn’t be related to you by blood and shouldn’t stand anywhere in your inheritance. It is also essential to check your state’s specific laws regarding witness requirements for wills to ensure validity.

What is probate?

Probate is the legal process through which a deceased person's will is validated and their estate is administered. It involves proving the will's authenticity, settling debts, and distributing assets to beneficiaries. Probate ensures that the deceased's wishes are honored and provides a structured framework for managing their estate.

Key steps in the probate process

Here is an overview of the steps involved in the probate process of your will:

• Filing the Will
• Appointment of Personal Representative
• Inventory and Appraisal of Assets
• Notifying Creditors and Beneficiaries
• Paying Debts and Taxes
• Distribution of Assets

Probate is a bit of a time-consuming process, but it is essential for the execution of the will. Having a comprehensive knowledge about it helps you asses what to expect in terms of the procedure and its timeline. 

What are the different types of wills?

Different types of wills include the last will and testament, a living will, a testamentary trust will, holographic will, nuncupative will (oral will), pour-over will, joint will, and mutual will. Each serves unique purposes, from asset distribution to medical directives, and varies in legal requirements and enforceability.

✓ Last will and testament

This is the most common type of will. Also known as a death will, it is written to outline how a person's assets and affairs should be handled after their death. It specifies beneficiaries, appoints an executor, and can include guardianship provisions for minor children. A last will must be signed and witnessed according to state laws to be valid.

✓ Living will

A living will is also known as an advance healthcare directive. Its purpose is to highlight a person's wishes regarding medical treatment and end-of-life care. It specifies what actions should be taken if the individual becomes medically incapacitated and unable to communicate their preferences. This type of will is crucial for ensuring that healthcare decisions align with the individual's values and desires.

✓ A testamentary trust will

This type of will establishes a trust that comes into effect upon the testator's death. It allows for the management of assets for beneficiaries, particularly minors or individuals who may not be capable of handling their inheritance. The will outlines the terms of the trust, including how assets should be distributed and managed.

✓ Holographic will

A holographic will is a written document created by the testator without the formalities of witnesses or notarization. While valid in some jurisdictions, it may be more susceptible to challenges in court due to the lack of formal execution requirements. In fact, holographic wills are only considered valid in half of the states. So, it’s essential to check state laws regarding their validity.

✓ Nuncupative will

This is also known as an oral will and is usually made in the presence of witnesses. Such wills are often used in emergency situations. Moreover, they are generally limited in scope and may only be valid for personal property, depending on state laws. They are less common and can be more challenging to enforce.

✓ Pour-over will

A pour-over will is designed to work in conjunction with a living trust. It directs that any assets not already placed in the trust at the time of the testator's death should "pour over" into the trust. This ensures that all assets are managed according to the terms of the trust, simplifying the distribution process.

✓ Joint will

A joint will is a single document created by two individuals, such as spouses. It outlines their mutual wishes regarding asset distribution. While it can simplify the estate planning process, joint wills can be inflexible and may restrict the surviving spouse's ability to change their wishes after the first spouse's death.

✓ Mutual will

Similar to a joint will, mutual wills are separate documents created by two individuals that reflect a mutual agreement on how their estates will be handled. Unlike joint wills, mutual wills can be changed independently, but they often contain clauses that prevent one party from altering their will without the other's consent.

Choosing the right type of will is important for effective estate planning. Each type serves different purposes and has specific legal requirements, so it’s essential to consider your individual circumstances and consult with an estate planning professional to ensure your wishes are accurately reflected and legally binding.

Can I share my will with my spouse?

Although most attorneys don’t recommend it, you can share a will with your spouse. This is called a joint will and allows both partners to outline their wishes regarding asset distribution in a single document. However, you should know that joint wills are inflexible, as they can restrict changes after one spouse's death. It's advisable to consult an estate planning professional for guidance before you choose this form of will writing.

What if I don’t have a will?

If you don’t have a will, your estate will be distributed according to state intestacy laws, which may not align with your wishes. This process can lead to delays, additional costs, and potential disputes among heirs. Therefore, it is advisable to create a will when the time is right. This will help you ensure that your estate is taken care of according to your preferences. 

“According to USA Today, a 2024 survey reports that only 32% of Americans have wills.”

What is the process of creating a will?

Creating a will involves specifying the assets to include, selecting beneficiaries and executor or even a testator (if needed), writing it down, and notarizing it. At BetterEstate, our digital estate expert will guide you through the entire process, ensuring you receive the assistance you need. Here’s a step-by-step guide on how to create a legally binding will.

1. Determine your assets and liabilities: Begin by making a comprehensive list of your assets, including real estate, bank accounts, investments, personal belongings, and any other valuable items. Also, note your liabilities, such as debts and loans. This inventory will help you understand what you need to address in your will.
2. Choose your beneficiaries: Decide who will inherit your assets. Beneficiaries can include family members, friends, charities, or organizations. Clearly specify what each beneficiary will receive to avoid confusion or disputes later.
3. Select an executor: Appoint a trusted individual as your executor, responsible for managing your estate after your death. This person will ensure that your wishes are carried out, debts are settled, and assets are distributed according to your will. Discuss this role with the chosen executor to confirm their willingness to serve.
4. Consider guardianship: If you have minor children, designate a guardian to care for them in the event of your passing. This decision is crucial for their well-being and should be discussed with the potential guardian beforehand.
5. Draft the will: You can create your will using various methods, including online templates, software, or by hiring an attorney. Ensure that the document includes essential elements such as your name, the date, a statement revoking previous wills, and clear instructions for asset distribution.
6. Sign and witness the will: To make your will legally binding, sign it in the presence of witnesses. Most states require at least two witnesses who are not beneficiaries. They will also sign the document, affirming that they witnessed your signature.
7. Store the will safely: After creating your will, store it in a secure location, such as a safe deposit box or with your attorney. Inform your executor and trusted family members about its location to ensure it can be easily accessed when needed.
8. Review and update regularly: Life changes, such as marriage, divorce, the birth of children, or significant financial changes, may necessitate updates to your will. Regularly review your will to ensure it reflects your current wishes and circumstances.

By following these steps, you can create a clear and effective will that protects your interests regarding both your estate and loved ones. Sign up on our app and start estate planning for free.

A recent report says that Americans plan to designate around $36 trillion to their families, friends, nonprofits, and additional beneficiaries over the next 30 years.

Are you one of them? If you’re prepared to create your will, sign up on our app today. BetterEstate aims to help you through the process, making it quick, easy, and stress-free. Let us help you secure your legacy and ensure your wishes are honored.

When to change your will?

It’s best to consider changing your will when significant life events happen, such as marriage, divorce, the birth or adoption of a child, or the death of a beneficiary. Additionally, changes in financial circumstances or relocation to a different state may necessitate updates to ensure your wishes are accurately reflected and legally valid.

You should know that you can change your will as many times as you wish to. It is important to frequently revisit the terms of your will to ensure they are up-to-date.

Conclusion

The above guide has you covered for the will definition, its purpose, types, process of will writing, and all else you need to know about it. A well-crafted will doesn’t just help with managing the estate. In fact, it minimizes disputes, streamlines the probate process, and provides peace of mind for both you and your family. Don’t delay in taking this important step; consider using resources like BetterEstate to simplify the process and create a will that reflects your unique wishes and values. Start planning today for a secure future.