What Are the Most Important Parts of a Will?

I was authorized to market prepaid legal services during my time as a licensed financial coach. Because these services included a will, I recommended them to my clients who had not created one.

Creating a will determines how your estate will be distributed after your death. Without a legal will, the court decides how your estate will be distributed. As a result, your assets might not go to the people or nonprofit organizations you prefer.

Understanding the most important parts of a will helps determine the information to include when creating one. The following details can help.

Preamble

The preamble typically is the first clause of a will. The preamble identifies the testator, or the person creating the will, and a statement indicating that the document is their will.

Revocation of Prior Wills

The revocation of prior wills might be part of the preamble or a separate paragraph. The revocation of prior wills states that all previous wills are revoked and the current provisions must be followed. 

Statement of Family

The statement of family identifies the testator’s family members, such as a spouse, any children, and any children of deceased children. The statement of family can include any family members who are disinherited.

Specific Bequests

A specific bequest clarifies that a certain item, such as real estate, vehicles, jewelry, or investments, will be given to a particular person:

• General bequest: Clarifies money payable from the assets of the estate without a designated source of the funds, such as a cash gift for a specific person.

• Demonstrative bequest: Designates money payable from a specific source of funds, such as a bank account.

• Residuary bequest: The rest of the estate after other bequest distributions, creditor payments, and administration expenses.

Designation of Personal Representative

The designation of a personal representative typically includes one or more backups. If the designated individuals are deceased or decline to serve, state law determines who serves as the personal representative or who chooses this person.

 

Signatures

The testator and two witnesses must sign at the end of a will. Many states have specific requirements about signing a will to make it valid.

Additional Will Provisions

Additional will provisions can include the following:

Trusts

A will might provide instructions to create a testamentary trust:

• After the estate is administered, some or all of the residuary assets are transferred to the testamentary trust.

• Because most states prohibit minors from inheriting property, a trust might be created for any minors who otherwise would inherit directly from the estate.

• Some states require a guardianship to receive any inherited assets for a minor.

• Creating a trust for minors helps avoid burdening family members with the cost and hassle of a guardianship.

Guardianship for Children

A will might name guardians for minor children. Although state laws vary, a guardianship judge typically considers the deceased parent’s expressed wishes.

Payment of Creditors

A will might direct the personal representative to pay creditors. This language is not required because the personal representative must follow state law when paying creditors. Working with an estate planning attorney can help draft the wording so the personal representative does not pay more creditors and claims than state law requires.

In Terrorem Clauses

An in terrorem clause states that anyone who challenges a will forfeits all entitlements under the will. However, state law dictates whether this clause is enforceable.

Working with an Estate Attorney

Working with an estate attorney to prepare a will is highly recommended. Creating a will without legal advice can make the will invalid.

*This information is for educational purposes only.