Will

Also called Last will and testament

A legal document that says who receives a person’s property after death, who handles the estate and, often, who would raise minor children.

What it means

A will lets a person, called the testator, direct where their probate assets go, name an executor to carry out those wishes and nominate a guardian for minor children. It can be changed or replaced at any time while the person is alive and mentally capable, either with a new will or an amendment called a codicil.

Signing rules are set by each state. Most require the will to be signed in front of witnesses, often two, and many allow a notarized self-proving affidavit that makes probate smoother. Some states accept handwritten wills without witnesses, and others do not. Someone who dies without a valid will is intestate, and state law decides who inherits.

A will does not avoid probate. Assets with a beneficiary designation, joint ownership with survivorship rights or a trust generally pass outside the will entirely, so the will governs only what is left.

Example

For example, a parent’s will leaves everything equally to two children and names a sibling as guardian. Their 401(k), however, still lists a former spouse as beneficiary, so that account goes to the former spouse regardless of what the will says.

How it’s used

Naming a guardian for minor children
Directing property not covered by beneficiary forms or a trust
Choosing who will settle the estate

Strengths and weaknesses

Strengths

Relatively simple and inexpensive to create
Lets the owner choose heirs and a guardian instead of state law
Can be updated as life changes

Weaknesses

Assets it controls still go through probate
Becomes a public record once filed with the court
Can be invalid if state signing and witness rules are not followed

Good to know

Rules vary by state, and many people have an estate attorney draft or review a will and revisit it after marriage, divorce or a new child.

Educational information only, not financial, tax or legal advice. Rules, limits and rates change; check the IRS, your lender or plan, or a qualified professional before acting.