The Use Of Wills In Estate Planning

A person’s property, upon his death, is distributed according to the state laws of descent and distribution unless he stipulates otherwise in a will. In Texas, for instance, one-half of all community property would go to the children, and a guardian would be appointed to account to the court for the use of the funds until the children reached age 21. Through a will a person
(normally called the testator) can avoid placing such property in the hands of children until they are ready to use it wisely. Some of the advantages of a properly executed will can be summarized as follows. 

1. Permits distribution according to the owner’s wishes rather than under the “public will” dictated by the state legislature. 

2. Promotes a prompt estate settlement by reducing red tape and disputes over the intentions of the testator. 

3. Reduces taxes by distributing property in the best way possible for tax savings consistent with other objectives. 

4. Substitutes predeath planning for postdeath confusion. 

5. Enables the testator to choose his own executor, a person who will be familiar with the estate and the testator’s desires. 

6. Permits the establishment of testamentary trusts or pour-over into already existing trusts. 

Even when a person does take the time and effort to make a will, fulfillment of his wishes is not guaranteed. The following rules of conduct are suggested to assure that the will fulfills its maker’s desires. 

1. Consult a lawyer to execute the will to assure its legality, a life insurance man to examine the needs for life insurance in the plan, an accountant if tax problems are important, and a trust officer if trusts are to be considered. The simple will drawn up at home may appear inexpensive but may prove the most expensive in the long run. 

2. To avoid conflicts, life insurance policy beneficiaries should be coordinated with those designated in the will. 

3. To permit flexibility use percentage figures where possible rather than absolute dollar amounts. 

4. Keep the will current by having it reviewed every few years. 

5. Name a competent executor. Prompt and accurate execution of a will is as important as its drafting.