One caution - taking a will or trust document “off the shelf” can create serious complications for heirs and beneficiaries.
With that being stated…the question is…”Is having some form of will or trust better than having no will?”
The answer is…that depends.
For some individuals with very few assets - those who want to make sure that their final wishes are put in order… “something” might be better than “nothing”.
However, a person with assets such as property, stocks, IRAs and those individuals with families might be advised to seek professional help before embarking on the creation of a will or a trust document. Wills and trusts are legal documents.
Those individuals with children; those who have been divorced/remarried or have blended families; those with ‘special needs’ dependents; those who own a small business or farm property; and others with special circumstances will need a will and or a trust document that fits their unique requirement.
The legal document of a will or trust must be of a standard that will stand against any possible misinterpretation and stand up to any legal challenge.
With that in mind, the very simplified answer to – “Heir or Beneficiary?”
The terms heir and beneficiary are not the same thing, but sometimes mistakenly used interchangeably. There are critical differences between being an heir and being a beneficiary.
An heir may be entitled by virtue of their relationship to some property of the deceased. That relationship might be a marital relationship, a relationship by adoption, or a blood relationship such as a surviving child or sibling.
A beneficiary can be an individual or an entity. A beneficiary, for example, could be a friend; a non for profit organization/charity or a church. Some property is transferred to the beneficiary via a legal document, such as the will or trust of a deceased. A beneficiary is specifically stated in the will or trust document.
When someone dies ‘intestate’ or without a will, then the heirs could inherit any property/assets of the deceased.
Dying without a will means that a probate court will decide - who are the rightful and ‘legal’ heirs.
There are very specific succession laws about who inherits when there is no will.
The phrase ‘heir at law’ is seen most often in matters when a person dies without a will – the heir at law can be the person(s) entitled to inherit according to succession laws.
When there is a will, the will governs the asset distribution. For example, in their will an individual can give assets to a charity (the XYZ charity) and not to their adult children. Thus, all heirs are not ‘automatically’ beneficiaries. In the above example, the adult children could be heirs, however they are not signified as beneficiaries under the terms of the will. The XYZ charity, under the terms of the will, is the beneficiary of certain assets.
Note: There are exceptions – with respect to spousal rights.
It is beyond the scope of this article to give detailed information about individual circumstances. The above is only a very brief introduction to the legal issues of making a will.
Keep in mind that the best option when making a will is to consult with a professional.
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