Will FAQs
What is a Will?
Generally, there are two basic types of Wills: (1) Simple Will; and (2) Pour-Over Will. A Simple Will is a written document that names guardians for your minor children; and states what will happen to your property after you die.
Like a Simple Will, a Pour-Over Will is a written document that names guardians for your minor children, but it is different in that instead of being a standalone Will, it works in conjunction with an RLT, acting as a “clean-up” document, used to put into your RLT assets you might have forgotten to.
What are the Downsides of a Will?
Probate Guarantee. Wills always go through a process called probate. Probate is a court-supervised proceeding in which a judge will first authenticate a Will (confirm the person making the Will was mentally competent, did not write the Will under duress, etc.), and then divide that person’s estate up according to the terms of their Will. Probate is not ideal, as it is expensive (approximately 4-5% of a decedent’s assets gets lost in legal and court fees; time-consuming (can often take up to a year or longer before beneficiaries receive their inheritance; and is public (any member of the public can access a Will).
No Incapacity Planning. A Will can only help you plan for death, not for incapacity. So if you become incapacitated (e.g., via car accident or a stroke), your family members will need to go through court to get authority over your finances—again, a public and unpleasant process.
No Guardrails. When you leave property to your children through a Will, your child will get everything outright on his or her eighteenth birthday (whether that be $5 or $5M), period. You cannot put guardrails in place to ensure your child spends the inheritance responsibly.