Q. I am thinking
about writing my own will. I don’t have a lot of property
and I don’t want to spend a lot of money on estate
planning. Is a handwritten will legal?
Michigan law specifies
certain formal requirements for executing and signing a
will. The will must be in writing and it must be signed by
the person making the will (called the testator) and by two
witnesses. If the testator is physically unable to sign the
will the testator can direct another person to sign on
his/her behalf and in his/her presence. The witnesses must
either witness the actual signing of the will by the
testator or the testator must acknowledge to the witness
that he/she signed the will. However there is an exception
to the requirement for two witness in the case of a
handwritten will (also called a holographic will) if the
handwritten will meets certain requirements. A handwritten
will is considered a valid will under Michigan law if the
material portions of the will are in the testator’s
handwriting and if the will is dated and the testator’s
signature appears at the end of the will. A handwritten
will does not need to be witnessed or notarized. If you are
considering a handwritten will you should write out the
entire will in your own handwriting in order to avoid any
questions about what provisions will be considered
material.
A common problem with
handwritten wills is that the person writing the will does
not provide for possible changes in circumstances. For
example most parents assume that their children will outlive
them, so in a handwritten will they don’t include a provision that
addresses what happens if one of their children dies before
they do. Michigan law will “fill in the gaps” for these
types of situations with certain default rules, but the
result may or may not be what the maker of the will
intended. If your will simply states that all of your
property is to be divided equally among your children, and
one of your children dies before you do leaving
grandchildren, then the deceased child’s share will pass to
the grandchildren. This may be what you intended. However,
if not – if your intent in that situation is that your
property should be divided among your surviving children -
your will must specifically state that. Another
example of a will provision that can create a potential
question of interpretation is a provision that gives a
specific item of property to a specific person – what
happens if you no longer own that item at the time of your
death? The default rules in the Michigan probate code are
somewhat complicated, so it is best to provide for this
contingency in your will. In some instances the person
making the will does not take into consideration the
possibility that the amount of property in his/her probate
estate might be much less than what he/she now owns, either
because of declining asset values, unforeseen expenses, or
other circumstances. For example, if your will includes a
provision for gifts of specific dollar amounts to certain
persons or charities, with the balance to be divided among
your children, what happens if there is not enough money
left after paying the claims and expenses to make all of the
specific gifts? One alternative to consider is to make the
gifts in terms of percentages rather than specific dollar
amounts. In all of the above examples the unfortunate
reality is that by the time the question arises as to what
the testator actually intended when he/she wrote the will,
the person who can best answer that question – the testator
- is no longer available.
It is important to keep
in mind when writing a will that a will, by itself, does not
avoid probate and that many property transfers that take
place by reason of the property owner’s death are governed
by beneficiary designations or joint ownership and not by
the will. Property that is titled solely in your name, with
no beneficiary designations, must go through probate in
order transfer legal title to the persons designated in your
will or, if you have no will, to your heirs. An interest in
real estate that is held as a tenancy in common instead of
joint tenancy will require probate. However many property
transfers that occur by reason of the property owner’s death
take place outside of the probate process, through
beneficiary designations or joint ownership. If as asset is
subject to a beneficiary designation, such as a life
insurance policy, annuity, bank account, or retirement
account, those assets will pass directly to the
beneficiaries and are not governed by the will or subject to
probate, except in limited circumstances where all the
beneficiaries are deceased or the estate is named as the
beneficiary. Assets that are held in joint tenancy pass
directly to the joint owner and are not governed by the
will.
Your will should
express your wishes as clearly as possible. You will save
legal fees by writing your own will. However if your will
has a lot of gaps or has provisions that are unclear your
beneficiaries may have difficulty figuring out what you
really intended, or worse yet, your estate may become the
subject of expensive and lengthy probate court proceedings
that could have been avoided. Before deciding to write your
own will you should consider contacting several attorneys
who do estate planning and inquire about the fees for
writing a will. Some attorneys are reluctant to quote a
specific fee because a “simple will” sometimes turns out to
be a lot more complicated, but the attorney might be willing
to give you a fee range. By having an attorney prepare your
will your may not only be saving your beneficiaries some
headaches and extra legal fees but also assuring (or at
least increasing the likelihood) that your final wishes will
be carried out in the way you intended.