True or false – it’s illegal to not have a valid will? False, obviously.
True or false – you can have more than one valid will? True, not so obviously. Why would someone have two wills?
Well, wills are often probated meaning it goes through a legal process of being verified. Whether or not a will needs to be probated depends on the institution where some, or part, of the assets are kept. For example, the bank will request a probated will in order to release funds to the executor, like dead Bob’s $50,000 savings account. But probate costs money, more specifically it costs a percentage of assets. When determining the assets, everything in the will is included. Having only the assets in a will that need to be probated will save money. This is a primary reason for having certain assets in one will, with others in a second will.
But there are times when having a second will that is not probated can save thousands in fees. For instance if you have a business worth a few million dollars. You probably have agreements, insurance, and successors in place for this and so don’t need a probated will to execute these arrangements.
So next time you’re talking to your successful business friend, ask them if they have two wills – and watch while they look at you like you have two heads.