What Are The Different Types of Wills and Which One Is Right For You?

While the term “will” is often used as a catch-all reference to a document that outlines your final wishes, the reality is that there are actually four main types of wills. These include: 

• last will (or simple)
• testamentary trust
• joint will
• living will

These documents are all wills – either electronically or on paper – and legal in the U.S., though oral wills called “nuncupative” also exist. What kind of will you should create depends on your circumstances and situation, and this article aims to advise you in your decision on which will is best for you. 

Here are the different types of wills in detail and their function:

Simple (Last) Will

A simple or last will is the most common one, and what people first think about when they hear the word “will.” A simple will is a legal document that states the distribution of your assets and beneficiaries after you pass away. It includes the information of the testator (you), ensures that the testator is sound of mind, lists the beneficiaries of the will and what they are receiving, can name guardians for children, and names an executor for the will who is responsible for the correct distribution to the beneficiaries. A simple will needs to be signed by the testator and a witness. 

A simple will is a good option for you if you know how you want to distribute your assets and property among your beneficiaries. 

Testamentary Trust

A testamentary trust (sometimes referred to as a trust under will or will trust) is a trust that arises after the creator of the will has passed away. It’s designed to oversee any estate accumulated during that person’s lifetime and triggered by the death of that person. That might include the result of a postmortem lawsuit or the proceeds of a life insurance policy held on the settlor. Its advantages include lower costs and the chance to better manage assets. 

On the other hand, it can be time-consuming and emotional for the trustee to ensure the testator’s requests are strictly adhered to. Beneficiaries may also have a difficult time holding dishonest trustees to account. For those reasons, lawyers often recommend a revocable living trust that can be canceled or changed at any time. The larger the estate, the greater the likelihood that a testamentary trust may be useful.

Living Will

A living will (also known as an advance health care directive) is a legal document that states your preferences and decisions you want to be made in case you become incapacitated. Even though the names are similar, a living will is very different from a simple will. While the simple will distributes your assets, a living will states what medical decisions are in your best interest. 

It’s never too early to write a living will. Many people make the assumption that they don’t need such a will until they’re old and sick, however accidents and injuries can happen at any time. 

Joint Will

Joint wills are often created by married couples to ensure that one spouse is taken care of when surviving the other one. Instead of having two separate simple wills, couples have one joint will that merges their last will and testament. A joint will is like a contract and cannot be changed without the permission of the other person. 

A joint will might be the right option for you and your partner if both of you are in total agreement on how to distribute your assets and property and if you only have a few beneficiaries.

With GoodTrust’s online estate planning service you can easily create a will for yourself or a family member for just $8 a month (includes unlimited edits and downloads). We’re aware of how difficult this might be for some people so we also guide you through the process and simplify the steps. Don’t hesitate, get started today.