What Is A Will, And What Goes Into A Will? Submitted by James C. Mulder, WealthKeepers 713-461-9699 / JCMulder@WealthKeepers.net / www.WealthKeepers.net A will is a legal document that you make which provides for the settlement of the probate estate after your death. 1. The probate estate is all property that you own and that does not pass pursuant to an agreement, contract, or by operation of law. a) If the you have an ownership interest in any life insurance policies, employee benefit plans, joint tenancy with right of survivorship properties, or trusts, these items are considered part of your estate for federal estate and gift tax purposes (i.e., subject to transfer tax at death or earlier, if given away), but are not part of your probate estate since ownership of this property is not transferred by Will but, for example, by a beneficiary designation, or automatically by law. 2. If you are married, your estate consists of one-half of the community property of you and your spouse plus any separate property you may own. a) Community property is all property acquired by either spouse during the marriage except for that acquired by one of them by gift or by devise or descent (i.e., inherited). b) Separate property is all property acquired before marriage (or while unmarried) and any property acquired by gift or by devise or descent (i.e., inherited). c) Unless altered by a pre-marital or marital agreement, all income from separate property is community property. d) If community property and separate property are commingled, it will all be presumed community property. In a Will you, the Testator, may determine: 1. To whom the property should be distributed (family, friends, and charities). 2. How the estate should be distributed (i.e., outright or in trust, etc.). 3. Who will supervise the distribution process and take charge of paying debts and taxes and transferring the property (Independent Executor). 4. Other important matters (such as when and under what circumstances the Estate shall be distributed). With a Will the Testator can plan so as to minimize estate and income taxes, and thereby increase the property passing to the beneficiaries (and decrease the property passing to Uncle Sam).D. With a Will the Testator can be certain that his or her property will pass according to his or her plan (and not the plan provided by Texas law for persons who die without Wills). With a Will the Testator can make special provisions for family needs, such as trusts for loved ones that can be protected from their spouses and their creditors, or for minors or those unable to handle property. You can also make special gifts to family members, friends or charities. A duly executed Will must be signed by the Testator. The Testator must be 18 years old (or married, or in the armed forces.) The will must be signed by the Testator and two attesting witnesses who sign in the Testator’s presence. A witness should not be a beneficiary. Texas recognizes holographic (handwritten, unwitnessed) wills if they are “wholly in the handwriting of the Testator” and signed by the Testator. Holographic wills often lead to confusion and litigation and should generally be avoided. Competency - did the Testator have sufficient capacity to: 1. Understand the nature of the act he or she was doing? (i.e., he or she was writing a will) 2. Know the nature and character of his or her property? 3. Know the natural objects of his or her bounty? 4. Understand the disposition he or she was making? About Our Show Advisor: James C. Mulder is an attorney with over thirty years of experience in Wealth Transfer, Tax and Asset Protection Planning. He is Board Certified in Estate Planning and Probate Law and in Tax Law by the Texas Board of Legal Specialization. He is one of only nine attorneys in the Houston area that are Board certified in both Estate Planning and Probate Law and Tax Law. Mr. Mulder concentrates his practice in Wealth transfer, tax, and asset protection planning. The implementation of such planning includes the preparation of very comprehensive wills, trusts, business organizations and family partnerships. Mr. Mulder has prepared over 1,000 asset protection plans. WealthKeepers offers a 1-hour initial conference at no charge to discuss your estate planning need. At the end of that conference they can usually quote you a fixed fee to prepare your will and estate plan and can offer you common fees of attorneys experienced in the preparation of the legal structures needed to implement your plan. For more information, contact James C. Mulder at 713-461-9699 or email JCMulder@WealthKeepers.net today to schedule your free consultation.