Planning for the future, especially for what happens after we’re gone, isn’t easy, but it’s essential. Having the correct type of will can save your loved ones from legal complications, ensure your wishes are respected, and provide peace of mind. Here’s a breakdown of the four most common types of wills and when each might be appropriate.
1. Simple Will
The Simple Will is a widely used and fundamental type of will, best suited for individuals or couples with uncomplicated financial situations and family structures.
In a Simple Will, you can designate:
- Who inherits your assets
- A guardian for minor children
- A personal representative (also known as an executor) to manage your estate
This type of will must go through probate, which is the legal process of validating a will and overseeing the distribution of assets. To be “self-proving” and avoid complications, it generally requires signatures from witnesses and a notary.
If your estate is uncomplicated and your wishes are clear, a Simple Will is a great place to start.
2. Testamentary Trust Will
A Testamentary Trust Will goes a step further. It includes provisions to create a trust upon your death, allowing you to control how and when your beneficiaries receive their inheritance.
This type of will is particularly useful if:
- You want to delay distributions until children reach a certain age
- You have beneficiaries with special needs
- You’re concerned about potential mismanagement of the inheritance
Though it still goes through probate, the added trust provides increased protection and control. Like the Simple Will, it should be witnessed and notarized to avoid legal disputes.
3. Holographic Will
A Holographic Will is entirely handwritten and signed by the testator (the person making the will). While this might seem convenient, especially in emergencies, it’s the most legally vulnerable type of will.
Because it’s not witnessed, it’s more likely to be contested in court and can lead to costly litigation. Some states don’t even recognize holographic wills, and courts are wary of fraud or unclear intentions.
This option should only be used when there’s no alternative available, and ideally, it should be replaced with a properly executed will as soon as possible.
4. Pour-Over Will
A Pour-Over Will is typically used in conjunction with a revocable living trust. Its role is to ensure that any assets not already placed in your trust during your lifetime are transferred into it after your death.
This helps ensure all your assets are eventually governed by the terms of your trust, maintaining privacy and continuity. However, the assets covered by the Pour-Over Will still pass through probate before being funneled into the trust.
This type of will is a critical safety net for anyone using a trust as part of their estate plan.
Final Thoughts
Choosing the correct type of will depends on your family structure, financial situation, and long-term goals. A qualified estate planning attorney can help you select and properly execute the will that best protects your legacy and loved ones. Whether your needs are simple or complex, there’s a legal solution to ensure your wishes are honored. Contact G. Deffenbaugh today with Colorado Trusts & Taxes with any questions.