A will, formally known as a Last Will and Testament, is one of the most familiar estate-planning documents.

A will allows you to put your wishes in writing and provide instructions for how certain property should be handled after your death.

At Setter Financial, based in Marinette, Wisconsin, we help individuals and families throughout Wisconsin, Michigan, and additional states where properly licensed understand how wills fit into a complete estate plan and how they coordinate with beneficiaries, retirement accounts, life insurance, real estate, and other assets.

What Is a Will?

A will is a legal document that provides instructions for what should happen to certain assets after you die.

Depending on your situation and state law, a will may allow you to:

• Name the people or organizations you want to receive property
• Name an executor or personal representative
• Name guardians for minor children
• Provide instructions for personal belongings
• Address certain family circumstances
• Create instructions for assets that do not otherwise transfer automatically

A properly prepared will can provide clarity and help reduce uncertainty for your family.

Why Is a Will Important?

Without a valid will, state law may determine how certain assets are distributed.

That means the result may not match what you would have chosen.

A will gives you the opportunity to make those decisions yourself.

A will may be especially important if you:

• Have children
• Own a home or other property
• Have personal belongings you want distributed in a specific way
• Have a blended family
• Want to name an executor
• Want to name guardians for minor children
• Want certain people or organizations to receive property
• Want your wishes clearly documented

What Does a Will Control?

A will generally controls assets that are owned individually and do not already have another method of transfer.

However, many assets may pass outside of a will.

Examples may include:

• Life insurance with a named beneficiary
• IRAs and 401(k)s with beneficiary designations
• Annuities with named beneficiaries
• Jointly owned property with survivorship rights
• Transfer-on-death accounts
• Payable-on-death accounts
• Assets properly owned by a trust

This is why creating a will is only one part of estate planning.

Your beneficiary designations and account ownership should also be reviewed.

Does a Will Avoid Probate?

Generally, a will does not avoid probate.

A will provides instructions to the probate court about how certain assets should be handled.

Assets controlled by the will may still need to go through the probate process.

This is an important distinction.

If avoiding or reducing probate is one of your primary goals, other estate-planning tools, such as a properly created and funded revocable living trust, may be worth considering.

What Is Probate?

Probate is the legal process used to administer certain assets after a person dies.

The probate process may include:

• Validating the will
• Appointing an executor or personal representative
• Identifying assets
• Paying valid debts and expenses
• Resolving certain claims
• Distributing remaining property to beneficiaries

Probate is not automatically a bad process, but some families prefer to reduce court involvement, maintain greater privacy, or simplify the transfer of assets.

Naming an Executor

A will generally allows you to name the person you want to manage your estate after your death.

This person may be called an:

• Executor
• Personal representative
• Estate representative

The terminology varies by state.

The person you select may be responsible for:

• Working with the probate court
• Gathering assets
• Paying bills
• Handling estate expenses
• Communicating with beneficiaries
• Distributing property according to the will

Choosing someone responsible and trustworthy is important.

Wills and Minor Children

For parents of minor children, a will can be especially important.

A will may allow parents to nominate the person they would want to serve as guardian if both parents die.

Without documented instructions, a court may ultimately decide who should care for the children.

A will can also coordinate with trusts or other planning tools designed to manage inherited assets for children until they reach an appropriate age.

Wills and Blended Families

Blended families can create additional estate-planning considerations.

A family may include:

• Current spouse
• Children from a previous relationship
• Stepchildren
• Former spouses
• Grandchildren

Without careful planning, the distribution of assets may not match your intentions.

A will can help document your wishes, but beneficiary designations, property ownership, and trusts may also need to be coordinated carefully.

Wills and Real Estate

Owning a home or other real estate makes estate planning particularly important.

A will can provide instructions regarding property, but real estate that passes under a will may still go through probate.

Depending on your goals, other ownership arrangements or a revocable living trust may provide additional options.

Real estate planning should be coordinated with your overall estate plan rather than handled separately.

Wills and Retirement Accounts

Retirement accounts generally pass according to the beneficiary designation on the account—not according to the instructions in your will.

Examples include:

• Traditional IRAs
• Roth IRAs
• 401(k)s
• 403(b)s
• Other retirement accounts

This makes beneficiary reviews extremely important.

A will and beneficiary designations should work together rather than contradict one another.

Wills and Life Insurance

Life insurance generally passes directly to the beneficiary named on the policy.

The will normally does not control those proceeds unless the estate itself is named as beneficiary.

Life insurance beneficiary designations should therefore be reviewed as part of the estate-planning process.

What Happens If You Die Without a Will?

Dying without a valid will is commonly referred to as dying intestate.

When someone dies intestate, state law generally determines how probate assets are distributed.

That distribution may depend on factors such as:

• Whether you are married
• Whether you have children
• Whether children are from different relationships
• Whether parents or other relatives survive you

The result may be different from what you would have chosen.

Creating a will gives you greater control over those decisions.

When Should You Update a Will?

A will should not be created once and forgotten.

You should consider reviewing it after major life changes such as:

• Marriage
• Divorce
• Birth or adoption of a child
• Death of a beneficiary
• Death of an executor
• Purchasing or selling significant property
• Starting or selling a business
• Receiving an inheritance
• Moving to another state
• Significant changes in finances
• Changes in family relationships

Even without a major life event, periodic reviews can help ensure your will still reflects your wishes.

Is a Will Enough?

Sometimes.

For some individuals and families, a will may be an important part of an appropriate estate plan.

For others, a more complete plan may include:

• A revocable living trust
• Financial power of attorney
• Healthcare power of attorney
• Beneficiary planning
• Real estate titling
• Life insurance planning
• Retirement account planning

The right estate plan depends on your circumstances and goals.

How Setter Financial Helps

Setter Financial is not a law firm and does not provide legal advice.

Our role is to help you understand how a will fits into your broader financial and estate plan.

We can help you:

• Organize your assets
• Review beneficiary designations
• Identify accounts that may transfer outside of a will
• Coordinate life insurance and retirement accounts
• Understand the difference between wills and trusts
• Identify questions to discuss with an estate-planning professional
• Coordinate your financial plan with your estate-planning goals

Through our affiliation with Estate Guru, clients may also have access to estate-planning tools and professional resources for creating and reviewing legal documents.

Wills in Wisconsin, Michigan & Beyond

Setter Financial is based in Marinette, Wisconsin and serves clients throughout Wisconsin, Michigan, and additional states where properly licensed.

Whether you are creating your first will, updating an existing Last Will and Testament, or trying to determine whether a will or trust is more appropriate, we can help you understand the financial side of the estate-planning process.

Start With a Conversation

You do not need to know exactly which estate-planning documents you need before getting started.

The first step is understanding your assets, family situation, beneficiary designations, and goals.

From there, we can help you organize the financial side of the process and coordinate the appropriate next steps.

John Cox | Setter Financial
Based in Marinette, Wisconsin
Serving clients throughout Wisconsin, Michigan & additional states where licensed
Call or text: 906-364-1644

Education first. No pressure. Just options.