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 New York Married Person's Will with Children with a Credit Shelter Trust for Spouse is a legal document specifically designed to protect the financial interests of a married individual who has children and wishes to ensure their spouse's financial security while also preserving assets for the next generation. This estate planning tool is often utilized by New York residents to structure their assets, minimize estate taxes, and provide for their loved ones. A Credit Shelter Trust, also known as a bypass trust or a family trust, is a specific provision within the will that allows a married person to leave assets to their spouse, while also taking advantage of the estate tax exemption available to them. By using a credit shelter trust, the individual can effectively reduce and potentially eliminate estate tax liability upon their death, ensuring that a significant portion of their wealth passes to their children or other designated beneficiaries. In New York, there are various types of Married Person's Wills with Children with a Credit Shelter Trust for Spouse, each tailored to meet the unique needs and circumstances of the individual. Some common variations include: 1. Basic Married Person's Will with Children with a Credit Shelter Trust for Spouse: This type of will establishes the credit shelter trust and allows the spouse to access the income generated by the trust, while preserving the principal for the children or other designated beneficiaries. 2. Qualified Terminable Interest Property (TIP) Trust: This type of will is commonly used when there are stepchildren from a previous marriage. The TIP trust allows the spouse to receive income from the trust during their lifetime, with the remaining assets passing to the children or other beneficiaries upon the spouse's death. 3. Marital Deduction Trust: Designed to maximize the use of the marital deduction, this type of will allows the creation of a marital trust that qualifies for the unlimited marital deduction. This means that the assets held in the trust are not subject to estate tax upon the individual's death, but rather when the surviving spouse passes away. 4. Disclaimer Trust: This type of will includes a provision that allows the surviving spouse to disclaim (renounce) certain assets, which are then transferred to the credit shelter trust. This can be a valuable planning tool to ensure that estate tax exemptions are fully utilized. 5. Generation-Skipping Credit Shelter Trust: This type of will includes provisions to take advantage of the generation-skipping transfer tax exemption, which allows assets to be passed down to grandchildren or subsequent generations without triggering additional estate taxes. In conclusion, a New York Married Person's Will with Children with a Credit Shelter Trust for Spouse is a crucial estate planning document that enables married individuals with children to protect both their spouse and their future generations from excessive estate taxes while ensuring their assets are distributed according to their wishes. Consulting with an experienced estate planning attorney is essential to determine the most appropriate type of will based on individual circumstances and goals.
