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Governing Instrument (Probate): Key Insights into Estate Planning
Definition & Meaning
A governing instrument is a legal document that establishes how a person's assets will be managed or distributed after their death. This includes various types of documents such as wills, trusts, insurance policies, accounts with payable-on-death (POD) designations, and securities registered in beneficiary form (transfer-on-death or TOD). Additionally, it encompasses instruments that create or exercise powers of appointment or attorney, as well as any similar documents that dictate the distribution of a person's estate or assets.
Table of content
Legal Use & context
Governing instruments are used primarily in estate planning and probate law. They play a critical role in determining how a person's assets are handled after their passing. Legal professionals often assist clients in drafting these documents to ensure their wishes are honored and to minimize disputes among heirs. Users can also manage some aspects of this process themselves using legal templates from resources like US Legal Forms, which provide ready-to-use documents tailored to specific needs.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A person creates a will that specifies how their property should be divided among their children after their death. This will serves as their governing instrument.
Example 2: An individual establishes a trust to manage their assets during their lifetime and specifies that the remaining assets should be distributed to their grandchildren upon their death (hypothetical example).
State-by-state differences
State
Governing Instrument Variations
California
Allows for holographic wills (handwritten) under certain conditions.
New York
Requires two witnesses for a valid will; no holographic wills allowed.
Texas
Permits both formal and informal wills, including handwritten versions.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Description
Will
A legal document that specifies how a person's assets should be distributed after their death.
Trust
A fiduciary arrangement where one party holds assets for the benefit of another, often used to manage assets during a person's lifetime and beyond.
Power of Attorney
A legal document that grants one person the authority to act on behalf of another in legal or financial matters.
Common misunderstandings
What to do if this term applies to you
If you need to create or manage a governing instrument, consider the following steps:
Assess your assets and how you want them distributed.
Consult with a legal professional to ensure compliance with state laws.
Explore US Legal Forms for templates that can simplify the process.
If your situation is complex, seek professional legal assistance to avoid potential disputes.
Find the legal form that fits your case
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