How Do I Fill Out a Mutual Will?

Full question:

Re: Mutual wills for married couple with minor children, Article 7, paragraph C: We wish to establish a trust for our child (or any future children) who are under age 21 (cf fields 37 and 41). _We do not understand paragraph C._ Why would the sample provide ages of 18 and 25 (fields 38 & 39) for disbursement? What happens, for instance, if the child is 19-which would qualify him for the trust but place him over the age of disbursement? And why is the age in field 39 OVER the age of 21? Basically, we're looking for clarification on this entire paragraph. Also, it is our understanding that we should list the contingent benficiary for life insurance and retirement accounts as 'the trustee named under the last will of ME.' Is this correct, or should we simply list the trustee's actual name?

Category: Wills and Estates
Date: 04/07/2025
State: Michigan

Answer:

Field 37 provides for the age of the youngest child in order for the assets to be managed under a trust. In any of the remaining children are under the age in field 37, assets will be transferred to a trust. Field 38 deals with the age of a specific child. As each child reaches the age in field 38, they may begin receiving distributions from the trust. Field 39 deals with the age of the youngest child. Field 39 specifies when the trust will be terminated, which will be the specified age of the youngest child. The ages may be any age you specify. In some cases, a parent may specify an age older than the age of majority, such as when the child has difficulties managing money and the parent seeks to protect spendthrift ways from dissipating the funds.

When naming another in a will, it is important to be as clear about the identity as possible. If a person is named in their individual capacity, such as by the person's name only, it does not indicate that the person is acting in an official capacity as a trustee. In order to have someone receive property to be managed through a trust by them as a trustee, the person should be named in the capacity of trustee, such as John Doe, Trustee. If it is possible that the trustee named in a trust may change, such as when successor or alternate trustees are named in a trust, a more general reference to the "Trustee of the Doe Family Trust" may be used.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What are the disadvantages of a mutual will?

One disadvantage of a mutual will is that it can limit the flexibility of the surviving spouse. Once a mutual will is executed, the terms generally cannot be changed without the consent of both parties. This can create complications if circumstances change, such as financial needs or family dynamics. Additionally, mutual wills may lead to disputes among heirs if the surviving spouse does not follow the agreed terms. It's essential to consider these factors and consult with an attorney to ensure that mutual wills align with your estate planning goals.

How to write a will for minor children?

When writing a will for minor children, it’s crucial to appoint a guardian to care for them in the event of your death. Specify who will manage any assets left for the children, such as a trust. Clearly outline how and when the assets will be distributed, considering their age and maturity. You may also want to include instructions for their education and upbringing. Consulting with an attorney can help ensure that your will meets legal requirements and effectively protects your children's interests.

What is an example of a mutual will?

An example of a mutual will is when a married couple agrees that upon the death of one spouse, the surviving spouse will inherit all assets, and upon the death of the surviving spouse, the remaining assets will go to their children. This type of will often includes specific provisions that cannot be altered without mutual consent, ensuring that both parties' wishes are honored. It's advisable to have legal assistance to draft a mutual will that reflects both spouses' intentions clearly.

What does a mutual will look like?

A mutual will typically includes similar provisions for both spouses, outlining how their assets will be distributed upon their deaths. It often names each other as primary beneficiaries and specifies contingent beneficiaries, such as children. The document may also include clauses that prevent changes to the will without both parties' agreement. The format can vary, but it generally follows standard will structures, including an introduction, bequests, and signatures. Consulting an attorney can ensure that the will meets legal standards.

Should married couples have joint or separate wills?

Whether married couples should have joint or separate wills depends on their individual circumstances. Joint wills are a single document signed by both spouses, often simpler but less flexible. Separate wills allow each spouse to tailor their estate plans according to their wishes. If there are children from previous relationships or significant differences in assets, separate wills may be more appropriate. Consulting with an estate planning attorney can help couples determine the best approach for their situation.

How to create a mutual will?

To create a mutual will, both spouses should first discuss their wishes regarding asset distribution and beneficiaries. It's important to document these agreements clearly in writing. Consulting with an estate planning attorney can help ensure that the will complies with state laws and captures both parties' intentions. The will should include clauses that specify it is a mutual will, preventing changes without mutual consent. After drafting, both spouses must sign the document in accordance with legal requirements.