Last Will and Testament (Will)
What most people think about when they think of estate planning is creating a last will and testament (often just called a will). A will is one of the most important estate planning documents, as it is how you specify who you want to receive your property when you pass away. In your will you also nominate your personal representative, who is the person who will administer your estate—settling debts and distributing assets to loved ones—and make sure your wishes are carried out. Florida has strict requirements about who can serve as your personal representative, and it is always a good idea to name a successor in case the initial person is unable or unwilling to serve.
A will only dictates what happens with assets that go through a court process called probate. Assets that have beneficiary designations, such as bank accounts, brokerage accounts, and retirement accounts, and assets held in trust, will pass outside of probate, so your will does not control what happens with these unless your listed beneficiaries die before you or you never list a beneficiary in the first place.
Read below to learn about some of the many things to consider when drafting a will to make sure that your wishes are followed and you are not setting loved ones up for easily avoided headaches.
Considerations for Your Will
Testamentary Trusts
Wills can be simple, where you give all of your property to a small group of people without restrictions, or they can be more complex and involve testamentary trusts, which are trusts that are only created through your will and do not begin until you pass away and your estate goes through probate.
These types of trusts may be useful if you are concerned about leaving money outright to a young person or other family member who may not have the maturity to manage money or other property. Also, some types of trusts, like qualified special needs trusts—special trusts to prevent a spouse from losing means-tested government benefits like Medicaid—can only be created under a will.
Guardianships for Children
In a will, parents of young children can designate a guardian for their children in the event they pass away before their children reach adulthood. This can help prevent a court battle in which multiple relatives argue over who should serve as a child’s guardian, especially when not all relatives get along.
Property Passing to a Minor
Many people may not understand the added headache they may create for their family by not considering the possibility a child may receive property from their estate. In Florida, if a minor receives more than $15,000 from an inheritance, a guardianship will need to be established to protect the funds until the child turns 18, at which time they will be able to fully access the property. This is a potentially expensive and time-consuming process that is easily avoided by setting up a trust in your will that is only created if someone under an age you determine receives property.
Still have questions about your last will and testament? Visit our Last Will and Testament FAQ or click below to schedule a free consultation with a Gainesville estate planning attorney today.
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Michael Merhar is a Gainesville estate planning attorney helping people throughout North Central Florida create comprehensive plans that preserve legacies and minimize headaches. To get help from a Florida estate planning attorney drafting a will that is tailored to your needs, schedule a free consultation today.