Last Will and Testament 101
Below is an introduction to wills, a key component of any good estate planning. Once you have completed going over the information below, we strongly urge you to visit our Areas of Practice Estate Planning page for basics of estate law and answers to common questions concerning estate law. At Frundt, Lundquist & Gustafson, Ltd., we assist our clients to prepare and routinely monitor their estate plan thus providing them with peace of mind that their loved ones will always be looked after should they ever be separated, be it naturally or unexpectedly through sudden tragedy.
Wills 101
What is a will?
A will is a legal document that governs the administration of your property such as real estate, investments, money and personal belongings at your death.
Does everyone need a will?
The law does not require that you have a will. However, a will is a useful tool that provides you with the ability to control how your estate will be divided at your death. If you die without a will, Minnesota’s inheritance laws will control how your estate will be divided.
What is in a will?
Generally, the following basic elements are included in a will:
· Your name and place of residence;
· A description of any assets you wish to give to a specific person;
· Names of spouse, children, and other beneficiaries, such as charities or friends;
· Alternative beneficiaries, in the event a beneficiary dies before you do;
· Establishment of trust, if desired;
· Cancellation of debts owed to you, if desired;
· Name of trustee for any trusts created;
· Name of a personal representative to manage the estate;
· Name of guardian for minor children;
· Your signature and witnesses signatures.
What is a personal representative?
A personal representative (also known as an executor or administrator) is the person named in your will who oversees payment of your debts and distribution of your assets according to your will. Since a personal representative is considered a fiduciary, he or she must observe a high standard of care when dealing with the estate. Anyone can be named as a personal representative, but most often it is a spouse, relative, attorney or friend closest to the person making the will.
Where should I keep my will?
You should keep your will in a safe but accessible place. Some possibilities are:
· A fire proof file at Frundt, Lundquist & Gustafson, Ltd.
· Safe deposit box
· Safe place at home
· Court Administrator Office at courthouse – filing fee is $27.00
Most clients store their will in our office or a bank safety deposit box. You should tell your spouse and your personal representative where your original will is stored. It is not necessary for anyone other than you to have copies of your will, but we do retain a copy of your will in our confidential file for safekeeping, provide you with a confirmed copy and scan the original electronically.
If I already have a will, can I change it?
Of course you can. Changing your will is often done by a codicil. Do no write on your original will as this is not an effective change. If you are changing the beneficiaries or changing the amounts being given to beneficiaries, we recommend a new will. The fee for this is similar to the fee for adding a codicil. Contact us if you want to make any changes and to make certain all changes are effective.
What is a Power of Attorney?
A power of attorney is a legal document authorizing another person to act as your agent. The person designated in this document is called your “attorney-in-fact” and their power may be revoked at any time by you during your life and ceases at the time of your death. If you are incompetent and don’t have a power of attorney, a Court Supervised Conservatorship or Guardianship may be necessary.
What is a Health Care Directive?
A health care directive is a legal document that allows you to appoint an agent/or health care decision maker and give advance directions as to health care in the event you become incapacitated or are unable to communicate.