What is a Mutual Will? Definition, How It Works, and Examples
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Summary:
A mutual will is a legally binding document typically executed by married or committed couples, ensuring that the terms of the will remain intact for the surviving partner after one party passes away. This article explores the intricacies of mutual wills, including their purpose, how they work, and the steps involved in creating one.
What is a mutual will?
Mutual wills are legal documents that married or committed couples often utilize to ensure their wishes regarding the distribution of assets and property are followed after one partner passes away. Unlike individual wills, mutual wills are binding for the remaining partner, restricting their ability to alter the terms unilaterally.
How mutual wills work
A mutual will serves the purpose of safeguarding assets for the deceased’s children, particularly in cases where the surviving partner may remarry. Without such provisions, there’s a risk that assets could pass to a new spouse rather than the children. It’s crucial to differentiate mutual wills from joint wills, as the latter involve a single document reflecting the wishes of both partners, whereas mutual wills are separate documents but with binding terms.
Steps to creating a mutual will
1. Decide the property to include
Start by listing significant assets and determining which items should be included in the mutual will. Each spouse may have separate assets, and decisions need to be made regarding joint assets as well.
2. Decide who will inherit property
After identifying assets, choose beneficiaries and consider naming alternate beneficiaries in case the primary choices are unavailable.
3. Choose an executor
Select an executor responsible for executing the terms of the will. Ensure the chosen individual is willing to take on this role.
4. Choose a guardian for children
If children are minors, designate a guardian who will care for them if the other parent is unable to do so.
5. Choose someone to manage children’s property
If leaving property to children, appoint a responsible adult to manage their inheritance until they reach adulthood. This person can serve as a property guardian, custodian, or trustee.
6. Make the will
Engage an attorney or utilize online services to draft the mutual will, ensuring it aligns with state laws and accurately reflects your wishes.
7. Sign the will in front of witnesses
Both partners must sign the will in the presence of at least two witnesses. Consider notarizing the signature to streamline the probate process.
8. Store the will safely
Inform the chosen executor about the will’s location and how to access it when necessary. Store the document securely to prevent loss or damage.
Frequently asked questions
What is the difference between a mutual will and a joint will?
A mutual will involves separate documents for each partner with binding terms for the surviving partner, whereas a joint will is a single document reflecting the wishes of both partners.
Can a mutual will be changed?
While mutual wills can be modified, any alterations must comply with the agreements set forth in the original will and often require legal assistance.
Are mutual wills legally binding?
Yes, mutual wills are legally binding documents that impose obligations on the surviving partner to adhere to the terms established in the will.
Can beneficiaries challenge a mutual will?
Beneficiaries may challenge a mutual will under certain circumstances, such as alleging coercion, fraud, or lack of capacity at the time of its creation.
What happens if one partner remarries after the other’s death?
If the surviving partner remarries after the death of their spouse, the terms of the mutual will typically ensure that assets pass to the deceased partner’s children rather than the new spouse.
Is it necessary to have a mutual will if both partners have separate wills?
While having separate wills is an option, a mutual will provides added assurance that both partners’ wishes regarding asset distribution are legally binding and mutually agreed upon.
Key takeaways
- Mutual wills are legal documents executed by married or committed couples to ensure asset distribution according to their wishes.
- These wills bind the surviving partner to the terms established, preventing unilateral alterations.
- Steps to create a mutual will include asset identification, beneficiary selection, and designation of executors and guardians.
- Mutual wills offer pros such as asset protection but may present challenges in estate planning flexibility.
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