What it is:
How it works/Example:
A will is a legal document that indicates how a person wants his or her (money and property) to be distributed after death. A will also may describe any wishes for funeral and burial arrangements and may designate guardians for minor children.
When the testator (the person who created the will) dies, the executor, who is named in the will, administers the distribution of the beneficiaries (a beneficiary is any person or organization that receives the assets after the testator's death). The executor's job also includes paying any bills and taxes owed by the as well as locating and protecting the assets until they are distributed. An executor often receives payment for his or her services, and the payment varies from state to state.to the
A testator can change a will at any time for any reason and should keep the original copy of the will in a safe place. A copy should be given to the executor.
Why it matters:
A estate planning. In most cases, people create to protect the assets they have worked hard for and to ensure they are passed to appropriate individuals or organizations. The exector's job is to honor those wishes.is central to a person's
However, court procedures called probate are often required to pass assets from a testator to beneficiaries because the testator is no longer around to sign deeds and other documents necessary to transfer the assets. In probate, a judge must validate the and then issue a court order to distribute the assets. The probate process can last from six months to two years or more and can cost from 4% to more than 9% of the gross value of the , depending on the laws of the testator's home state. Everything in a becomes public record after it is probated.
Estate planning is a complex subject, and it is of particular importance to consult an estate-planning specialist when considering how to distribute assets after death.