Last Will and Testament: Protecting Your Assets When You Die

A Last Will and Testament is one of the most important documents you will ever create. This legally-binding contract is used to describe your final wishes in the event of your death. The last will allows you to appoint an estate administrator to oversee your estate and ensure assets are distributed to your loved ones. The last will is also used to establish guardianship for minor children and express burial preferences.

Creating a last will and testament is relatively easy. Much depends on the value of your estate, types of property owned, and number of heirs or beneficiaries to whom your property will be distributed. Individuals whose estates are valued at more than $50,000 should consult with a professional estate planner to determine which options offer appropriate protection.

When appointing an estate administrator it is best to discuss this decision with the person before naming them in the Will. Administrators handle many aspects of the estate. The person you feel is best equipped to handle these duties may not have the time or desire to fulfill these responsibilities.

The last will must first pass through probate before assets can be distributed to heirs. This process can last between six and twelve months. When family conflicts arise or if heirs contest the will, probate can drag on for several years and potentially bankrupt the estate.

Duties of the probate executor include taking inventory of assets and personal belongings. When valuable assets and property is involved, the executor must obtain property appraisals. This expense is paid for by the estate. Executors must pay outstanding debts, file certain documents through the probate court, prepare a final tax return, and distribute remaining assets according to directives outlined within the Will.

Estate administrators are compensated for their duties. Fees can be paid at an hourly rate, flat fee or percentage of the estate value. The fee should be outlined within the last will. Administrators are paid before assets are distributed to heirs and beneficiaries.

The last will and testament is used to designate specific gifts of valuable assets and personal property. Specific gifts can include jewelry, collectibles, artwork, personal belongings, automobiles, real estate and businesses.

Once specific gifts are listed the remainder of the estate can be bequeathed to a specific person. This is referred to as bequeathing the 'residuary of estate.' Residuary assets are typically gifted to the surviving spouse or direct lineage heirs such as children, siblings, uncles, aunts, nieces, nephews and grandchildren.

Gifts to charities are outlined within the last will and testament. Decedents can bequeath charitable gifts to one or more charities. Donations should be detailed within the Will. The probate executor is responsible for distribution of charitable donations. A receipt listing the value of the gift should be provided for the decedent's final tax return.

Last, but not least, burial preferences can be detailed within the last will. Individuals who hold life insurance policies or have purchased burial plots or prepaid Funeral services should state where the documents are located.

Executing a last will and testament is the best gift you can give your family. Handling the estate of a person who dies intestate (without leaving a will) can lead to family disputes and prolong the probate process.

Many options exist for executing a last will and testament. Preformatted forms can be downloaded via the Internet or purchased through office supply stores. Most banks offer estate planning services to their customers. Probate lawyers can execute a last will for a nominal fee. Estate planners can establish trusts to protect assets from probate and inheritance tax.

Private investor, Simon Volkov, purchases probate estates to reduce financial burdens and provide cash for inheritance to heirs. Simon has published hundreds of articles regarding inheritance, estate planning, probate, and the importance of executing a Last Will and Testament. Learn how to protect your assets by visiting www.SimonVolkov.com.