What Is A Reciprocal Will?

Introduction

When it comes to estate planning, one of the terms that you may come across is a reciprocal will. It is a type of will that is commonly used by married couples or partners who want to leave their assets to each other. In this article, we will discuss what a reciprocal will is, its benefits, and how it differs from other types of wills.

What is a Reciprocal Will?

A reciprocal will is a legal document that is created by two individuals, usually a married couple or partners. It is a mirror-image document where each party leaves their assets to the other in the event of their death. In other words, if one partner passes away, the surviving partner will inherit all of their assets, and vice versa.

Why Create a Reciprocal Will?

There are several reasons why a couple may choose to create a reciprocal will. One of the main reasons is to ensure that their assets are passed on to their partner in the event of their death. It can also help to simplify the estate administration process, as the surviving partner will automatically inherit the assets without the need for probate.

How is a Reciprocal Will Different From a Joint Will?

A joint will is a legal document that is created by two individuals, usually a married couple or partners. Unlike a reciprocal will, a joint will is a single document that outlines the distribution of assets for both parties. Both parties must agree on the distribution of assets, and it cannot be changed after one party passes away.

How is a Reciprocal Will Different From a Mirror Will?

A mirror will is a legal document that is created by two individuals, usually a married couple or partners. Like a reciprocal will, it is a mirror-image document where each party leaves their assets to the other in the event of their death. However, unlike a reciprocal will, a mirror will does not have to be identical in its terms. Each party can leave their assets in different proportions, as long as they both agree on the overall distribution.

What are the Benefits of a Reciprocal Will?

There are several benefits to creating a reciprocal will. One of the main benefits is that it can help to simplify the estate administration process. Since the surviving partner automatically inherits all of the assets, there is no need for probate. This can save time and money, as probate can be a lengthy and expensive process.

What are the Disadvantages of a Reciprocal Will?

While there are many benefits to creating a reciprocal will, there are also some disadvantages. One of the main disadvantages is that it can limit your flexibility in the future. Once a reciprocal will is created, it cannot be changed without the consent of both parties. This can be problematic if one party wants to make changes to their will, but the other party does not agree.

Who Should Create a Reciprocal Will?

A reciprocal will is typically created by married couples or partners who want to ensure that their assets are passed on to each other in the event of their death. It is also a good option for couples who have similar wishes when it comes to the distribution of their assets.

How is a Reciprocal Will Created?

A reciprocal will can be created by contacting an estate planning attorney. The attorney will work with the couple to draft a legal document that outlines the distribution of assets in the event of their death. Once the will is drafted, both parties must sign it in the presence of witnesses to make it legally binding.

What Should be Included in a Reciprocal Will?

A reciprocal will should include the following information:

• The names and addresses of both parties
• A statement that the will is reciprocal
• A list of assets and how they will be distributed
• A section for alternate beneficiaries
• A section for appointing an executor
• A section for appointing a guardian for minor children

Can a Reciprocal Will be Changed?

A reciprocal will can be changed, but it requires the consent of both parties. If one party wants to make changes to their will, they must first discuss it with their partner and get their agreement. Once both parties agree to the changes, the will can be updated and signed in the presence of witnesses.

What Happens if One Party Passes Away?

If one party passes away, the surviving partner will automatically inherit all of their assets, as outlined in the reciprocal will. The assets will pass to the surviving partner without the need for probate.

What Happens if Both Parties Pass Away?

If both parties pass away, their assets will be distributed according to the terms of the reciprocal will. If the will does not provide instructions for the distribution of assets, the assets will be distributed according to state law.

What Happens if a Party Gets Divorced or Remarried?

If one party gets divorced or remarried, they may need to update their reciprocal will to reflect their new circumstances. If the couple gets divorced, the reciprocal will is automatically revoked. If one party gets remarried, they may need to update their will to ensure that their assets are distributed according to their wishes.

What is the Cost of a Reciprocal Will?

The cost of a reciprocal will can vary depending on the complexity of the estate and the fees charged by the attorney. It is important to discuss the fees upfront with the attorney and ensure that all costs are included in the estimate.

Conclusion

A reciprocal will is a legal document that is commonly used by married couples or partners who want to ensure that their assets are passed on to each other in the event of their death. It can help to simplify the estate administration process and provide peace of mind for both parties. If you are considering creating a reciprocal will, be sure to consult with an estate planning attorney to ensure that all legal requirements are met.