What Is a Will? Understanding What It Does and the Common Terms You Should Know

If you've ever thought about creating a will, you may have wondered what it actually does.

Many people assume a will is simply a document that says who gets their belongings after they pass away. While that is certainly one of its purposes, a will can do much more. It allows you to make important decisions about your estate and provides clear instructions for your loved ones.

Understanding what a will is, what it can do, and the common terms used throughout the document can help you make informed decisions about your estate plan.

What Is a Will?

A will, sometimes called a Last Will and Testament, is a legal document that outlines your wishes for how your estate should be handled after your death.

A will allows you to:

• Decide who will receive your assets.
• Name the person who will administer your estate.
• Nominate a guardian for your minor children.
• Leave specific gifts to family members, friends, or charitable organizations.
• Create certain types of trusts, when appropriate.

Rather than leaving these important decisions to Maine law, a will allows you to make them yourself.

What Is Included in a Will?

Every will is different because every person's family and financial situation is unique. However, most wills contain several key sections.

Information About the Person Making the Will

The document identifies the person creating the will, known as the testator. This section confirms whose wishes are being expressed and establishes that the document serves as that person's Last Will and Testament.

Appointment of a Personal Representative

One of the most important decisions in a will is choosing a Personal Representative.

A Personal Representative is responsible for carrying out the instructions in your will and managing the estate administration process.

Their responsibilities may include:

• Filing the will with the Probate Court.
• Identifying and protecting estate assets.
• Paying debts, taxes, and expenses.
• Distributing property to beneficiaries.
• Closing the estate.

Therefore, selecting someone who is trustworthy, organized, and willing to serve is an important part of creating a will.

Beneficiaries

A beneficiary is any person or organization you choose to receive property from your estate.

Beneficiaries may include:

• A spouse.
• Children or grandchildren.
• Other family members.
• Friends.
• Charitable organizations.

Ultimately, your will allows you to decide who receives your assets according to your wishes.

Specific Gifts

You may wish to leave certain assets to specific people.

Examples include:

• Family heirlooms.
• Jewelry.
• Firearms or collections.
• Vehicles.
• Real estate.
• Monetary gifts.

In addition, clearly identifying these gifts can help reduce confusion and prevent disputes among family members.

Guardians for Minor Children

If you have minor children, your will allows you to nominate the person you would like to serve as their guardian if both parents are unable to care for them.

Although the court makes the final appointment, naming a guardian provides valuable guidance and helps the court honor your wishes.

Distribution of the Remaining Estate

Finally, after debts, expenses, and specific gifts have been addressed, your will explains how the remainder of your estate should be distributed.

Estate planning professionals often refer to this remaining property as the residuary estate.

Common Estate Planning Terms

Estate planning documents often contain legal terminology that may be unfamiliar. For example, here are a few common terms you may encounter.

Testator

The person who creates and signs the will.

Personal Representative

The individual responsible for administering the estate and carrying out the will's instructions. In some states, this role is referred to as an executor.

Beneficiary

A person or organization designated to receive property from the estate.

Estate

Everything you own at the time of your death, including real estate, bank accounts, investments, personal belongings, and other assets.

Probate

Probate is the legal process of administering a person's estate after death. In Maine, the Probate Court oversees this process.

Residuary Estate

The assets that remain after the estate pays debts, taxes, expenses, and distributes specific gifts.

What Can a Will Do?

A thoughtfully prepared will allows you to:

• Determine who receives your property.
• Name your Personal Representative.
• Nominate a guardian for your minor children.
• Leave specific gifts to individuals or charitable organizations.
• Create certain trusts under your will, when appropriate.
• Clearly communicate your wishes to your loved ones.

As a result, having a will in place can provide peace of mind and help your family navigate an already difficult time.

What Can't a Will Do?

Although a will is an essential estate planning document, it has limitations.

A will generally cannot:

• Avoid probate.
• Control assets that have designated beneficiaries, such as many retirement accounts or life insurance policies.
• Control assets that have already been transferred to a trust.
• Provide instructions for managing your affairs if you become incapacitated during your lifetime.

Because of these limitations, however, many individuals benefit from a comprehensive estate plan that also includes trusts, Durable Powers of Attorney, Advance Health Care Directives, and proactive long-term care planning.

What Happens If You Die Without a Will in Maine?

If you die without a valid will, you are considered to have died intestate.

Instead, Maine's intestacy laws determine who inherits your estate. While these laws provide a legal framework, they may not reflect your personal wishes or your family's circumstances.

Creating a will allows you to make these important decisions instead of leaving them to state law.

A Will Is the First Step Toward Protecting Your Legacy

A will is one of the most important documents you can have, but it is often only one part of a comprehensive estate plan.

Likewise, as your life changes, your estate plan should change with it. Marriage, children, retirement, purchasing a home, or changes in your financial circumstances are all good reasons to review your plan.

Whether you are creating your first will or updating an existing one, taking the time to understand how a will works is an important step toward protecting your family, preserving your assets, and ensuring your wishes are carried out.