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The formal and legal documents that set out the directions or order of the drafter on how his properties will be distributed after death is referred to as the last will and testament. A last will may come as an oral statement or handwritten, whereas a living will refer to a legal document that describes the preferences of the drafter when it comes to decisions about medical treatment in the event that he is unable to say his wishes. A simple will refers to a formal written documents following the state’s legal requirements of the state in which the will is drafted, including signatures and witnesses.
A simple will consists of an introduction and declaration wherein the drafter is identified, and his intention to make the last will and testament is stated, including a bequest clause stating how the property must be distributed, and a residuary clause disposing of any leftover assets. A complex will pertain to the complex estate including all provisions found in a simple will, and it may include establishing of the directions or trusts for the state to operate a business or collect debts owed to the testator. When a divorce or prenuptial agreement impact the will’s terms, or where the real estate is large to warrant property distribution and estate taxes, a more complex and detailed last will and testament may be required. You have to consider your debts, assets, beneficiaries, executors, and guardians, and special circumstances when creating your last will and testament. Creating a list of all your debts is important to determine if you have enough cash to cover your student loans, equity loans, car loans, credit cards, mortgages, medical bills, and personal debts. It is also important to list all of your assets such as bank and investment accounts, real estate, retirement accounts, and valuable personal property such as musical instrument, artwork, antiques, and firearm collections. When it comes to your beneficiaries, they include your immediate family, relatives, trusted friends, and organizations or institutions that you like to support.
You can designate an executor of your last wills such as a family member who has knowledge about fiscal matters, a trusted business person or banker. If you have minor children, indicate the name of their guardian. Special circumstances include the last will and testament for a child with special needs, exclusion of a child or grandchild from a will, any arrangement for the care of your pets or livestock, or the person who will replace the CEO position of a large company.What You Should Know About Businesses This Year