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Will
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Definition
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Legal declaration of a person's plan for disposition of his or her property
after death.
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When Does It Apply?
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Revocable before death but legally effective at death and applies to the
situation that exists at the time.
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How Does It Operate?
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Names personal representative of estate, provides for payment of final expenses
and filing of tax returns, and lists distribution of property to selected
heirs.
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Advantages/Disadvantages
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Advantages - property owner can leave property as desired, guardians can
be named for children, and income and estate taxes can be reduced.
Disadvantage - none.
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Estate/Gift Tax Implications
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Special will design is necessary to reduce death taxes in larger estates.
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Income Tax Implications
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A personal representative must file final income tax return for the deceased.
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Other Considerations
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Each spouse may distribute by will his/her half of community property and
his/her separate property. Update a will as circumstances change. Does not
control property held in joint tenancy or directly left to a beneficiary.
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