TENTH, a will captures the distribution of assets that did not pass by other means. When a person dies, property will pass to another person by different means. These include:
(1) beneficiary designation. This is a form that is required to be filled out when you have life insurance, a 401K, or certain investment products. In the form you state who you would like to get the insurance, 401K or the investment product proceeds. A will does not change that designation.
(2) joint ownership. If someone is named jointly with you on real estate or other property, the will does not change the ownership rights of that person. At your death, that property becomes the other persons if the ownership is joint with rights of survivorship or tenancy by the entireties if husband and wife.
(3) trust. If property is owned by a trust, the terms of the trust will determine who gets the property. A will does not change the terms of the trust.
However, no matter how hard one may try to get property to pass by either of the 3 methods mentioned above, there are situations that can be missed. This includes proceeds that the estate may be awarded if your death was a wrongful death, ie. an automobile accident caused by another person. Who will get those proceeds? If you become incapacitated before your death and acquire property, you may be unable to use other methods to assure such property is distributed in accorance with your preference. A will is the MOST IMPORTANT document that you can have!!!
(1) beneficiary designation. This is a form that is required to be filled out when you have life insurance, a 401K, or certain investment products. In the form you state who you would like to get the insurance, 401K or the investment product proceeds. A will does not change that designation.
(2) joint ownership. If someone is named jointly with you on real estate or other property, the will does not change the ownership rights of that person. At your death, that property becomes the other persons if the ownership is joint with rights of survivorship or tenancy by the entireties if husband and wife.
(3) trust. If property is owned by a trust, the terms of the trust will determine who gets the property. A will does not change the terms of the trust.
However, no matter how hard one may try to get property to pass by either of the 3 methods mentioned above, there are situations that can be missed. This includes proceeds that the estate may be awarded if your death was a wrongful death, ie. an automobile accident caused by another person. Who will get those proceeds? If you become incapacitated before your death and acquire property, you may be unable to use other methods to assure such property is distributed in accorance with your preference. A will is the MOST IMPORTANT document that you can have!!!
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