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.
Iowa Married Person's Will with Children with a Credit Shelter Trust for Spouse is a legal document that outlines the wishes and distribution of assets for married individuals living in Iowa who have children. This type of will incorporates a specific provision called a Credit Shelter Trust, which aims to maximize estate tax savings for the surviving spouse. In Iowa, there are different variations of this will type, including: 1. Will with Specific Bequests: A Married Person's Will with Children with a Credit Shelter Trust for Spouse allows the testator (the person creating the will) to make specific bequests, which are gifts of specific assets or properties, to their chosen beneficiaries. This can be particularly useful for sentimental items or specific financial gifts. 2. Trust Provisions for Children: This will also include provisions for the testator's children, ensuring their financial security and guardianship if both parents pass away. It may outline the creation of a trust to manage and distribute assets to the children until they reach a specified age or milestone, such as completing higher education or turning 25. 3. Credit Shelter Trust for Spouse: The main objective of a Credit Shelter Trust is to utilize the estate tax exemption of the first spouse to die. This means that upon the death of the first spouse, assets up to a certain threshold can pass into the trust, free from federal estate tax. The surviving spouse can then benefit from the income generated by the trust while preserving the assets for the ultimate distribution to the children or other beneficiaries upon their own passing. 4. Executor and Trustee Designations: The testator may designate specific individuals to serve as the executor of the will, responsible for handling the administrative tasks, such as probate, and ensuring the will's instructions are carried out. Additionally, a trustee may be appointed to oversee the Credit Shelter Trust and manage the assets on behalf of the surviving spouse and children. 5. Pour-Over Will: A Married Person's Will with Children with a Credit Shelter Trust for Spouse may also incorporate a pour-over will provision. This provision ensures that any assets not specifically addressed in the will, such as assets acquired after creating the will, will "pour over" into the Credit Shelter Trust, providing additional protection and unified management. In summary, an Iowa Married Person's Will with Children with a Credit Shelter Trust for Spouse is a comprehensive legal document tailored to married individuals with children in Iowa. It serves to allocate assets to beneficiaries, establish trusts for children, and maximize estate tax savings through the utilization of a Credit Shelter Trust.
