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A will is used to distribute property according to your wishes, and to
appoint a guardian for your minor children. In addition, a will can be
used to use the marital tax deduction to its best advantage and to
provide special procedures in case you and your spouse die
simultaneously. Specifically, a will can be used to:
Avoid distribution of your estate under the law of Intestacy.
The State Intestacy Law will pass property to certain relatives of the
decedent. These laws have been drafted to be "fair" in the
average situation, but most people would like to choose who will receive
their estate when they die.
Permits you to nominate a guardian for your minor children.
Without a nomination in a Will, the court will appoint a guardian for
minor children. Relatives are not always the best choice for a guardian,
and consideration must be given to the financial situation of the
potential guardian as well as his or her health, age, willingness and
ability to care for your children.
Permit a waiver of the Probate Bond.
Without a Will, the court will require a fiduciary bond to be posted by
the executor (administrator) of the estate to guarantee the replacement
of any funds embezzled or diverted by him or her. Since this additional
cost must be borne by the estate and you should not choose an executor
you cannot trust, you will want to waive the bond requirement in your
Will.
Choose your Executor.
The duties of the executor of an estate can be very time consuming and
frustrating, especially to a spouse who has just lost his or her mate.
In your will, a qualified individual and or a corporate trust company
can be chosen to handle these duties.
Make specific bequests to individuals.
You may bequeath (give) specific items of jewelry, heirlooms, furniture,
or make cash bequests, and be certain that they will pass to the proper
persons. Without a Will, written or oral instructions may not be
followed.
Sale of assets during the probate administration.
Additional expense to the estate can generally be avoided by permitting
the sale of assets without the executor having to publish a notice of
sale in the newspaper. A sale of assets may be necessary in order to pay
death taxes and probate expenses.
Authorize the continuation of your business.
Unless the Will authorizes the continuation of a business, the executor
must operate it at his or her own risk. Many executors may elect not to
administer the estate unless this risk is borne by the estate.
Defer distributions to minors.
When parents die leaving minor children, each child's share of the
estate must be held in a guardianship account until he or she turns 18
(21 in some states), at which time the entire remaining share is
distributed outright. Trust provisions can be placed in the will to
defer these distributions until a more mature age.
Tax Savings.
Certain substantial tax savings are possible by creating Trusts in the
Will (known as Testamentary Credit Shelter Trusts). Similar tax savings,
plus probate savings can be gained by using Living Credit Shelter
Trusts.
Peace of mind.
Although this advantage cannot be measured in dollars, when your estate
is in order, an emotional load is lifted from the person who is
concerned for his or her family's well being.
 
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