The Last Will and Testament

Your Last Will and Testament is a legally-binding statement directing who will receive your property at your death. It also appoints a legal representative to carry out your wishes.  This is known as a “personal representative” in Michigan. However, the Last Will and Testament covers only probate property.  Probate property is property that is only titled in your name alone. Many types of property or forms of ownership pass outside of probate. Jointly-owned property, property in Trusts, life insurance proceeds and property with a named beneficiary, such as IRAs or 401(k) plans, all pass outside of probate.

Why should you have a Last Will and Testament? Here are some reasons:

First, with a Last Will and Testament you can direct where and to whom your estate (what you own) will go after your death. If you died intestate (without a Last Will and Testament), your estate would be distributed according to Michigan's law. Such distribution may or may not accord with your wishes.

Many people try to avoid probate and the need for a Last Will and Testament by holding all of their property jointly with their children. This can work, but often people spend unnecessary effort trying to make sure all the joint accounts remain equally distributed among their children. These efforts can be defeated by a long-term illness of the parent or the death of a child. A Last Will and Testament can be a much simpler means of effecting one's wishes about how assets should be distributed.

The second reason to have a Last Will and Testament is to make the administration of your estate run smoothly. Often the probate process can be completed more quickly and at less expense to your estate if there is a Last Will and Testament. With a clear expression of your wishes, there are unlikely to be any costly, time-consuming disputes over who gets what.

Third, only with a Last Will and Testament can you choose the person to administer your estate and distribute it according to your instructions. This person is called your personal representative. If you do not have a Last Will and Testament naming him or her, the court will make the choice for you. Usually the court appoints the first person to ask for the post, whoever that may be.

Fourth, for larger estates, a well-planned Last Will and Testament can help reduce estate taxes.

Fifth, and most important, through a Last Will and Testament you can appoint who will take your place as guardian of your minor children should both you and their other parent both pass away.