For some, as they prepare their Wills, it is a pretty clear cut decision on who will receive what and how much. For example, most married couples with children will first leave everything to each other, then when both spouses are gone, their estate will be divided equally among their children (do keep in mind there are reasons not to treat all children equally).
However, for others, figuring out who will receive their estate and how much of that estate, the decisions can be much more difficult and not as clear cut. This could be because the testator never married or had any children or because relations with the testator’s family are strained or there is not a lot of family to choose from.
In these instances, it is important for testators to think through:
1. What individuals (family or friends) and/or charitable organizations they would want to include in their Wills.
2. Determine whether these individuals and/or organizations receive special gifts (see my post on Special Gifts) or residuary gifts.
3. For those receiving the bulk of the testator’s estate (the residuary), figure out the percentage of the estate those individuals and/or organizations will receive.
The reason why working with percentages versus dollar amounts is important for those receiving the bulk of the testator’s estate is because it is unknown what the value of the estate will be when the testator dies. Percentages are easier to work with because it ensures the estate will be divided up, whatever the value is; whereas, if specific large dollar amounts are used, there may not be enough assets to cover those obligations.
For more insight and discussion for your specific situation, be sure to contact an estate planning attorney in your area.
