Define: Wills, Trusts, and Estates Law

Wills are legal documents that include information about your intended beneficiaries and which entity will benefit from a third party’s death. People write wills when they want to make sure their property is given to the people they wish without any other family members or friends competing over it. An estate is any property that a person owns at the time of their death. Trusts are legal documents that can be used to control the distribution of an estate and protect your assets from creditors before and after death.

There are two types of trusts: revocable and irrevocable. A revocable trust is a trust in which you retain ownership of your property during your lifetime. An irrevocable trust gives you a way to give up ownership and control over the property in exchange for tax advantages or other financial benefits.

What Are Will Settlements?

In the United States, courts are often required to settle disputes that arise due to Will contests. The courts will determine whether the deceased’s Will is valid or not. If a Will is legally valid, then it is considered a “Will settlement.” A Will settlement does not include any disputes about the legitimacy of a specific heir. The courts will only review a deceased individual’s Will in terms of its legality and validity. The law that governs Wills and settles disputes concerning Wills is called wills and trusts law.

State laws governing Wills and settling disputes concerning Wills differ significantly. For example, some states have a ” probate” system of distributing an estate. In contrast, others have a “probate-by-representation” system that avoids probate by using an executor to manage the estate without actually holding title to the property.

What Types of Will Settlement Procedures Exist?

Will settlement procedures refer to the processes involved in executing a will and distributing the deceased’s assets according to their wishes. These procedures can vary depending on jurisdiction, the complexity of the estate, and whether the will is contested. Below is a detailed overview of the types of will settlement procedures:

1. Probate

Probate is the legal process through which a deceased person’s will is validated, and their estate is administered. The primary goals of probate are to confirm the will’s authenticity, appoint an executor (if not already designated), settle any debts and taxes, and distribute the remaining assets to the beneficiaries. Probate procedures can be categorized as follows:

a. Formal Probate: This is a court-supervised process that involves several steps, including:

• Filing the will with the probate court.
• Notifying beneficiaries and creditors.
• Inventorying the estate’s assets.
• Appraising property values.
• Paying debts and taxes.
• Distributing the remaining assets according to the will.

b. Informal Probate: This is a simplified procedure for smaller estates or when the estate’s administration is straightforward and uncontested. It involves less court supervision and fewer formalities.

c. Summary Probate: Also known as small estate procedures, summary probate is designed for estates below a certain value threshold, simplifying the process significantly.

2. Administration without Probate

In some cases, probate may not be necessary. These scenarios include:

a. Living Trusts: If the deceased had established a living trust, the assets held in the trust can be transferred directly to the beneficiaries without going through probate. The successor trustee named in the trust document manages the distribution.

b. Joint Ownership: Assets held in joint tenancy or tenancy by the entirety automatically pass to the surviving co-owner(s) without the need for probate.

c. Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts: These accounts allow the account holder to name beneficiaries who will receive the assets upon the account holder’s death, bypassing probate.

d. Beneficiary Designations: Life insurance policies, retirement accounts, and other financial instruments often allow for the designation of beneficiaries. These assets pass directly to the named individuals without probate.

3. Intestate Succession

If a person dies without a will (intestate), the estate is distributed according to state or country laws of intestate succession. The process involves:

• Identifying the next of kin.
• Appointing an administrator to oversee the estate.
• Distributing assets according to a predefined hierarchy of relatives (e.g., spouse, children, parents, siblings).

The exact order and distribution rules vary by jurisdiction.

4. Will Contests

When the validity of a will is disputed, a will contest may arise. Common grounds for contesting a will include:

• Allegations of undue influence.
• Claims of lack of testamentary capacity.
• Accusations of fraud or forgery.
• Questions regarding the proper execution of the will.

Will contests are resolved through litigation, and the court determines the validity of the will and how the estate should be distributed.

5. Alternative Dispute Resolution (ADR)

To avoid the time and expense of litigation, some disputes over wills are resolved through ADR methods, such as mediation or arbitration. These processes involve:

• Mediation: A neutral third party helps the disputing parties reach a mutually acceptable agreement.
• Arbitration: A neutral arbitrator hears evidence and arguments from both sides and makes a binding decision.

6. Family Settlement Agreements

In some instances, the beneficiaries may agree to settle the estate according to their terms, deviating from the will’s provisions. This is often done to avoid litigation or accommodate special circumstances. The agreement must be documented and signed by all relevant parties.

7. Public Trustee Services

In some jurisdictions, a public trustee or government agency can be appointed to administer the estate, especially if no suitable private executor is available or willing to serve. The public trustee handles all aspects of the estate settlement, ensuring compliance with legal requirements.

How Will Contests Work?

One way to challenge a Will is through what is known as a “Will contest.” If an individual claims that the deceased person did not really know what he/she was doing when he/she wrote their Will, then the Will can be invalidated. The theory is called “lack of testamentary capacity”. It occurs when the testator’s mental or physical faculties are so impaired by disease or injury that they cannot think clearly or at all.

A Will is most often contested when there is no valid executor who can administer the estate and distribute the assets. Inheritors who believe that they should receive more significant amounts of property may also try to contest a Will in order to have more money. However, in instances where a person contests a Will for personal gain, this may result in criminal charges being brought against them. Some states have laws that make it easier for people to contest Wills based on alleged lack of capacity.

What Is Estate Planning and How Does It Relate to Will Settlement?

Estate planning involves making sure that your assets are distributed to the correct people when you die. Often, it consists of the use of a Will and other legal documents, such as trusts and Letters of Administration. If a person has not put much thought into estate planning, then their assets may be distributed to the wrong people or in the wrong amounts. For example, suppose a person does not have valid beneficiary designations for their bank accounts and other property. In that case, someone who does not intend to receive the money might have access to it instead.

The laws surrounding estate planning are very complicated. However, it is essential to get professional help if you wish to ensure that your property is distributed correctly after you die.

Conclusion:

Will contests can be prevented if you file your last will with your local courthouse and make sure that you have filed a valid estate plan. This is something that an attorney can help you with. If you do not have a valid estate plan, then the courts may do the job for you. Will contests can also be avoided by making sure that beneficiaries are correctly designated in a valid Will or trust document.

If you have questions about creating a trust or a will, refer to this link to schedule a consultation with a law firm handling all aspects of your estate planning.