Estate planning is an important part of managing one’s assets and ensuring that they are distributed according to the individual’s wishes.
One crucial aspect of estate planning is creating a will, which is a legal document that outlines how an individual’s assets will be distributed upon their death. In this blog post, we will discuss the three types of gifts commonly included in a will and why they are important to understand.
If you have any questions, the estate planning lawyers at Apple Payne Law can help.
When creating a will, it’s important to understand the different types of gifts that can be included. These gifts help to ensure that specific items or assets are distributed according to the individual’s wishes.
The three types of gifts that are commonly included in a will are specific gifts, general gifts, and residuary gifts.
The first type of gift is a specific gift. This is a bequest for a particular item or asset to a specific individual or group of people.
Specific gifts can include items such as real estate, jewelry, artwork, or vehicles. For example, an individual may choose to leave their vacation home to their children or a piece of jewelry to a close friend. By specifying these items in a will, an individual can ensure that they are distributed according to their wishes.
When creating specific gifts, it’s important to be as detailed as possible. This can help to avoid confusion or disputes among beneficiaries. For example, specifying that a piece of jewelry is to be given to a specific person, rather than simply stating that it should be given to “the family,” can help to ensure that the individual’s wishes are carried out.
It’s also important to consider the value of specific gifts when creating a will. If an individual has multiple specific gifts that exceed the value of their estate, it may be necessary to reevaluate the distribution of assets.
The second type of gift is a general gift. This is a bequest of all personal property to a group of people, such as the individual’s children, to be divided equally. This type of gift allows for the distribution of assets that may not have a specific designation but are still important to distribute fairly among loved ones.
General gifts can include items such as furniture, clothing, or personal belongings. Rather than specifying particular items or assets, a general gift allows for the distribution of assets that may not have a specific designation but are still important to distribute fairly among loved ones.
When creating a general gift, it’s important to be clear about the intended distribution among designated beneficiaries. This can be done through a memo or other written document that outlines the individual’s wishes.
It’s also important to consider any potential disputes or disagreements that may arise among beneficiaries and to have a plan in place for resolving them.
The third and final type of gift is the residuary gift. This type of gift covers any assets that were not specifically designated in the will. An individual may choose to leave their residuary estate to their spouse or children, divided equally. If no designated individual or group exists, the residuary estate can be left to a charity or other organization.
Residuary gifts can include cash, stocks, or real estate. These assets may not have been specified in the individual’s will as a specific or general gift but are still important to distribute among beneficiaries.
It is crucial to have a clear understanding of how the intended distribution of residuary gifts among beneficiaries should be made. One way to achieve this is by creating a written document, such as a memo, which outlines the individual’s wishes. Additionally, it is essential to anticipate any possible disputes or disagreements among beneficiaries and have a plan to resolve them.
If you have more questions about these gifts or creating a will, contact a Kernersville wills lawyer.
It’s important to consider the possibility that all designated beneficiaries may predecease an individual. In such cases, the estate may end up being distributed to distant relatives or even to the state. To avoid this, a Kernersville estate planning attorney can create contingent distributions that specify a charity or organization to receive the estate if there are no remaining beneficiaries.
Creating a will is an essential part of estate planning that allows individuals to specify how their assets are distributed upon their death. Understanding the different types of gifts that can be included in a will is important to ensure that specific items or assets are distributed according to the individual’s wishes. Working with an estate planning attorney can provide peace of mind and clarity in creating an estate plan that suits the individual’s needs.
Contact Apple Payne Law today to get started on your will. Call us today to schedule a free consultation.