Yardley Estate Planning, LLC
Wills
A Will is a written document that provides instructions for
the disposition of a decedent's (dead person's) property. The
term "Last Will and Testament" is simply a more complicated
name for a Will. The Will is also where a person names a
guardian for his or her children.
If a person dies with a Will ("testate"), the probate court
determines if the Will is valid, hears any objections to the
Will, orders that creditors be paid and supervises the process
to assure that property remaining is distributed in accordance
with the terms and conditions of the Will.
If a person dies without a Will ("intestate"), the probate court
appoints a person to receive all claims against the estate, pay
creditors and then distribute all remaining property in
accordance with the laws of the state. The major difference
between dying testate and dying intestate is that an intestate
estate is distributed to beneficiaries in accordance with the
distribution plan established by state law; a testate estate is
distributed in accordance with the instructions provided by
the decedent in his or her Will. Let’s repeat that because it is
important. If you don’t have a Will, your property will be
distributed according to state law and the courts will decide
who raises your children.
By contrast, "non-probate assets" are assets that do not go
through the probate process because the ownership
arrangement dictates who will receive the property at death.
Thus, non-probate assets are unaffected by the existence of a
Will because the assets pass at death by operation of law
regardless of whether a Will exists and irrespective of what it
may provide. Non-probate property typically includes life
insurance, pension or profit sharing plans, living trusts, and
certain joint property. With such assets, the property passes
according to the terms of the policy, plan, and/or trust or to
the surviving joint owner, and not in accordance with your
Will. For example, if you have a life insurance policy that
names your husband as a beneficiary, the proceeds of the
policy will pass directly to your husband regardless of what
your Will says.
Therefore, it is usually not enough just to execute a Will. To
ensure that your non-probate assets are correctly disposed
of, you must make sure that appropriate documents are
correctly filled out, including the beneficiary designations on
your life insurance and retirement accounts.
A Will is a written document that provides instructions for
the disposition of a decedent's (dead person's) property. The
term "Last Will and Testament" is simply a more complicated
name for a Will. The Will is also where a person names a
guardian for his or her children.
If a person dies with a Will ("testate"), the probate court
determines if the Will is valid, hears any objections to the
Will, orders that creditors be paid and supervises the process
to assure that property remaining is distributed in accordance
with the terms and conditions of the Will.
If a person dies without a Will ("intestate"), the probate court
appoints a person to receive all claims against the estate, pay
creditors and then distribute all remaining property in
accordance with the laws of the state. The major difference
between dying testate and dying intestate is that an intestate
estate is distributed to beneficiaries in accordance with the
distribution plan established by state law; a testate estate is
distributed in accordance with the instructions provided by
the decedent in his or her Will. Let’s repeat that because it is
important. If you don’t have a Will, your property will be
distributed according to state law and the courts will decide
who raises your children.
By contrast, "non-probate assets" are assets that do not go
through the probate process because the ownership
arrangement dictates who will receive the property at death.
Thus, non-probate assets are unaffected by the existence of a
Will because the assets pass at death by operation of law
regardless of whether a Will exists and irrespective of what it
may provide. Non-probate property typically includes life
insurance, pension or profit sharing plans, living trusts, and
certain joint property. With such assets, the property passes
according to the terms of the policy, plan, and/or trust or to
the surviving joint owner, and not in accordance with your
Will. For example, if you have a life insurance policy that
names your husband as a beneficiary, the proceeds of the
policy will pass directly to your husband regardless of what
your Will says.
Therefore, it is usually not enough just to execute a Will. To
ensure that your non-probate assets are correctly disposed
of, you must make sure that appropriate documents are
correctly filled out, including the beneficiary designations on
your life insurance and retirement accounts.
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| Yardley Estate Planning, LLC 41 University Drive, Suite 400 Newtown, PA 18940 Phone (267) 573-1019 Toll free (877) 251-4393 Fax (267) 604-9164 mgarry@yardleyestate.net www.yardleyestate.net |
