Articles

Is a Simple Will Best for You?


The will of the former Chief Justice of the Supreme Court, Warren Burger, was five sentences long. The will of Diana, Princess of Wales was only ten paragraphs long and can fit on two sheets of paper. In contrast, Jerry Garcia's will is several pages long, and Jacqueline K. Onassis's lengthy will contains extensive provisions including many to limit her estate's exposure to unnecessary tax liabilities.{1} No one contested Burger's simple will and all the bequests were carried out, but Garcia's estate and his second wife are still battling over the bequests contained in his longer will.

Does that mean that a simple will is better than a more wordy one? Rarely. Your will should be drafted so that your assets are distributed to the beneficiaries you intended and to take into consideration potential tax consequences so that no unnecessary taxes must be paid. It is unlikely that you can say all that in five sentences.

Your will should also be drafted in conjunction with other tax planning measures. A tax plan is crucial if one of your goals is to keep the taxable value of your estate below the amount of the federal unified credit. The current exemption of up to $625,000 of estate property increases gradually over the next eight years to a unified credit of $1,000,000. If your will is not properly drafted, you could lose the exemption.

It is also necessary to consider the source of any tax payments due because of the effect on your various bequests. If you state that all taxes should be paid from the residue and a beneficiary's only bequest is the residue, did you intend that beneficiary to only receive if there is something left over after the taxes are paid?

Your intent must be clearly apparent from the language used. One way to make sure your intent is clear is to include a definition section. But even then, it is possible that what a word means to you is not the ordinary meaning in the legal contest. For example, if you intend to include your stepchildren when you use the term "children," it is important to include them in your definition. If you are making a bequest to a charity, you should call the organization to obtain their official name.

Other things to keep in mind when you are preparing your will include whether you will provide for alternative bequests if the specific gift no longer exists at your death; whether you want to account for the changing values of assets; and if the names of the beneficiaries are spelled correctly. Also remember that potential beneficiaries excluded from the will are not bound by a no-contest clause.

Although a simple will accomplished what was intended by William Burger and Diana, Princess of Wales, there is no guarantee that brevity will accomplish your intent. Your goal of simplifying the probate process after your death may require more than a simple will now. A lawyer who is familiar with estate planning and probate can help you write a document that accomplishes what you intend to happen with your estate and avoids common mistakes and pitfalls. §

{1} - You can find links to complete texts of selected celebrity wills on the Net at www.ca-probate.com/wills.htm.