Statutory provisions in the various jurisdictions specify the formal requisites of a valid will. Also, in the absence of pertinent will provisions, the statutes generally govern the construction of a will and determine the effect of various acts or events on the will, such as the testator's subsequent marriage or divorce, or the birth or adoption of children after the execution of the will.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
When drafting wills, practitioners should beware of the perfunctory use of standard boilerplate language directing that all taxes be paid out of the residue of the estate. Because a number of Internal Revenue Code provisions include non-probate assets in the taxable estate if they pass as a result of the decedent's death, the result of such boilerplate could be to cause the residuary beneficiary to pay taxes on assets that pass to others, often wiping out the residuary estate altogether -- a circumstance probably not intended by the testator. In addition to the problems that may result for beneficiaries, the estate may also suffer if the residuary beneficiary is a charity or spouse, since the marital or charitable deduction can be drastically reduced by the necessity of paying taxes out of the residue, resulting in considerably higher taxes. Attorneys should discuss with their clients the existence of non-probate assets and the distribution of the tax burden.
A Hawaii Married Person's Will with Children with a Credit Shelter Trust for Spouse is an estate planning document specifically designed for married individuals in Hawaii who want to ensure the financial security of their spouse and children after their passing. This legal tool allows for the distribution of assets in a manner that minimizes taxes and maximizes the inheritances received by the family members. The Credit Shelter Trust, also known as a Family Trust or Bypass Trust, is a key component of this type of will. It is established upon the death of the first spouse and is designed to take full advantage of the federal estate tax exemption. By allocating assets to this trust, the deceased spouse's estate can use their exemption, thereby reducing or eliminating estate taxes. The surviving spouse can then use the assets in the trust for their benefit while still ensuring that the remaining assets pass to the children or other beneficiaries upon their passing. There are different variations of Hawaii Married Person's Will with Children with a Credit Shelter Trust for Spouse, each with its own unique features and provisions. These variations include: 1. Simple Credit Shelter Trust: This type of trust is created to maximize the estate tax savings for the surviving spouse while ensuring the ultimate distribution to the children or other beneficiaries. 2. Marital Deduction Trust: This trust option allows for the assets to qualify for the unlimited marital deduction, meaning that they are not subject to estate tax upon the first spouse's passing. The assets in this trust will then be subject to estate tax upon the surviving spouse's death. 3. Qualified Terminable Interest Property (TIP) Trust: This trust is designed to provide income and financial support to the surviving spouse during their lifetime. Upon their death, the remaining assets will be distributed to the children or other beneficiaries. 4. Irrevocable Life Insurance Trust (IIT): This trust is specifically focused on ensuring the proceeds from a life insurance policy are not included in the decedent's estate, minimizing potential estate tax liability. The Hawaii Married Person's Will with Children with a Credit Shelter Trust for Spouse offers a variety of options for married individuals in Hawaii to secure the financial future of their loved ones. The specific type of trust chosen will depend on the individual's unique circumstances and goals. Seeking professional legal advice is crucial to ensure the document is drafted correctly and tailored to meet the individual's needs.
