What is a Last Will and Testament
A Last Will and Testament (or Will) is a legal document in which a person declares who they want to receive certain assets (bank accounts, stocks, real estate, etc.) upon their death. To make a valid Will a person must be over the age of 18 and of ‘'sound mind and memory” and not be under duress or undue influence. The Will must be in writing which can either be typed or handwritten and it must be signed by the person making the Will. In Ohio, the Will must be witnessed by two individuals who are ‘disinterested persons'. This means the witnesses cannot be a beneficiary under the Will document. Some states may require more than two witnesses. Ohio does permit an ‘Oral Will' but this applies to a very specific set of circumstance and is extremely rare.
What Does a Will Cover (probate Assets)
A Will covers all of the property, bank accounts, stocks, personal property (“assets”) that are owned by the person at the date of their death and there are no other joint owners or beneficiaries. For example, Sue owns a house, has a bank account and a life insurance policy and just passed away. The house and the bank accounts were both titled in her name only with no joint owners or beneficiaries. The house and the bank account are going to be covered by her Will and these assets shall pass to her beneficiaries in her Will.
Sue's life insurance policy had her niece Kate as a beneficiary. Since Kate is the designated beneficiary on the life insurance policy, the life insurance proceeds will automatically go to Kate and is not covered by the Will.
In our example, if Sue is married to Joe and all of their assets are jointly titled in both of their names, then when Sue passes her ownership interest in the house and bank accounts will automatically transfer over to her husband Joe.
What Happens When There is no Will ?
When a person passes away and they have no Will, then you have to look at State Law as to who inherits the person's estate. Generally, the State where the person was a legal resident at the time of their passing will be the appropriate jurisdiction or State Law to follow.
In the State of Ohio, Revised Code 2105 is titled Descent and Distribution and this sets forth the legal rules and process by which the assets of a person will be distributed when that person died without a Will.
Importance of a Last Will and Testament
It is very important for every person to have a Last Will and Testament to avoid any unnecessary unintended consequences. You do not want leave it up to State Law to determine who gets your assets and property that you have spent a lifetime accumulating.
If you have any questions or would like to discuss anything in this article further, please contact our firm.
