Will
Estate planningGlossary term
Definition
A legal document that outlines how you want your assets distributed and your affairs handled after your death. A valid will typically names an executor to carry out your wishes, designates beneficiaries to receive your property, and can also name guardians for minor children. Without a will, state laws determine how your estate is divided, which may not align with your preferences.
Related terms
- Executor (Estate)The person named in a will who is responsible for carrying out the deceased's wishes, managing the estate through probate, paying debts and taxes, and distributing assets to beneficiaries. Being an executor is a significant responsibility that involves legal obligations, financial management, and often a considerable time commitment. If no executor is named or the named executor is unable to serve, the court will appoint an administrator to fulfill the role.
- Beneficiary (Estate)A person, organization, or entity designated to receive assets from a will, trust, insurance policy, retirement account, or other financial instrument upon the owner's death. Naming beneficiaries is one of the most important steps in estate planning because beneficiary designations on accounts often override instructions in a will. It is essential to review and update your beneficiaries regularly, especially after major life events like marriage, divorce, or the birth of a child.
- ProbateThe legal process through which a deceased person's will is validated by a court, their debts are settled, and their remaining assets are distributed to beneficiaries. Probate can be time-consuming and costly, often taking months or even years to complete depending on the complexity of the estate and state laws. Many estate planning strategies, such as trusts and beneficiary designations, are specifically designed to help assets avoid probate.
- IntestateThe legal status of a person who dies without a valid will, leaving the distribution of their estate to be determined by state intestacy laws. These laws typically prioritize spouses and direct descendants, but the exact rules vary by state and may not match what the deceased would have wanted. Dying intestate often results in a longer, more expensive probate process and can create family disputes over asset distribution.
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