Book Opener

Estate PlanningMaking a WillA will is a document that is signed during your lifetime that providesfor the distribution of your property upon death. Each state has itsown requirements for making a will. Figure 36.4 shows a sample will.A person who dies with a will is said to die testate and is called atestator (male) or a testatrix (female). A gift of personal property thatis made by will is called a bequest , or legacy. A gift of real propertythat is made by will is called a devise in most states. Some states referto a gift in a will of both real and personal property as a devise. Thosewho receive property by will are referred to as beneficiaries. They arealso known (in most states) as legatees if they receive personal propertyand as devisees if they receive real property under a will. The termheir refers to one who inherits property under a will or from someonedying without a will.Who May Make a WillAny person of sound mind who has reached the age of adulthood(eighteen years) may make a will. You reach eighteen on the day beforeyour eighteenth birthday (see Chapter 7). To be of sound mind, you musthave sufficient mental capacity to do the following:l Understand the nature and extent of your propertyl Know who would be the natural persons to inherit your property,even though you may leave your property to anyone you choosellKnow that you are making a willBe free from delusions that might influence the dispensation ofyour propertyl How to explain whomay make a willl How to list the formalrequirements of a willl How to change orrevoke a willl How to discuss thelegal protectionavailable to the familyof the deceasedl How to describe whathappens when someonedies with andwithout a willl How to outline thelegal procedures thatapply when someonedies owning propertyKnowledge of wills andestates will help youwhen the time comes inyour life.Formal Requirements of a WillTo be valid, a will must conform exactly to the law of the state whereit is made. A will that is legally made in one state will be recognized asvalid in every state.With the exception of nuncupative (oral) wills of personal propertyby soldiers and mariners, a will must be in writing. It must be signed andwitnessed by the number of witnesses required by state law—usuallytwo. A signature can be any mark (such as an X) that is intended by thetestator to be a signature. When a testator is paralyzed and cannot write,someone else can sign in the testator’s presence and with the testator’sl willl testatel bequest/devisel heirl codicill intestatel executor/executrixChapter 36: Retirement and Wills 779