Last will and testament.

What Is a Last Will and Testament?

A last will and testament is a legal document that communicates a person's final wishes pertaining to assets and dependents. A person's last will and testament outlines what to do with possessions, whether the deceased will leave them to another person, a group or donate them to charity, and what happens to other things that they are responsible for, such as custody of dependents and management of accounts and financial interests. Some states do allow for non-standard or unusual wills, such as a holographic will, while others do not.

KEY TAKEAWAYS

If parents with children die without a last will and testament, the courts will appoint a guardian for their minors.

If you die intestate, your estate is settled by the courts, including the distribution of all assets.

Writing a will and testament gives you some control over what happens to your assets after your death.

Trusts and life insurance policies with named beneficiaries do not pass through probate court.

Today, wills can be drafted affordably using an online will maker.

How a Last Will and Testament Works

A person writes a will while still alive and its instructions are only carried out once the individual dies. A will names a still-living person as the executor of the estate, and that person is responsible for administering the estate. The probate court usually supervises the executor to ensure that h the wishes specified in the will are carried out.

A will and last testament forms the foundation of an estate plan and is the key instrument used to ensure that the estate is settled in the manner desired by the deceased. While there can be more to an estate plan than just a will, it is the presiding document the probate court uses to guide the process of settling an estate.

Any assets not already designated by a beneficiary, such as a life insurance policy or qualified retirement plan, are not included as probate assets and pass directly to the beneficiaries.

Specifically, a will and last testament instructs the court in the disposition of all assets, including who is to receive them and in what amount. It establishes guardian arrangements for surviving dependents and accounts for any special circumstances, which may include the care of a special-needs child or an aging parent.