5 Types Of Clauses Commonly Included In Wills Or Trusts

A will or trust is a way to handle your finances now and distribute your assets after you pass away. But sometimes, you want more say in how or when your beneficiaries will acquire and use your assets. For this, you can include certain clauses in your will or trust. Several clauses are commonly included in wills or trusts.

Why You Want Clauses

You have worked hard all your life to earn the money and assets you have today. You can add clauses to your will or trust to financially take care of your loved ones – and make sure they use the money wisely.

Clauses can also help financially care for your loved ones. Perhaps you have a special needs grandchild, a minor child, or want to ensure your spendthrift daughter doesn’t go through all the money right away. For these, you may want to include a specific clause in your will or trust.

Types Of Clauses Commonly Included In Wills Or Trusts

Many types of clauses can be used in a will or trust. Here are 5 that we think are important:

1. No-Contest Clause: This takes away the incentive of beneficiaries challenging the validity of the will. This clause states that any beneficiary who contests the will and loses then forfeits their inheritance.
2. A mental competency clause: Also known as a testamentary capacity clause. It addresses the mental state or capacity of the person creating the document. Its purpose is to ensure that the testator or grantor is of sound mind and capable of making rational decisions regarding the distribution of their assets when they write the will or trust. 
3. Distributions to minors clause: Legally, a minor cannot receive the money from their inheritance. But you can name a trustee, and they will distribute the money to take care of the minor.
4. Distributions to disabled persons clause: If you have a beneficiary who is disabled, they may be receiving funding from the government. An inheritance of a large sum of money may disqualify them from this help. Instead, you want to make distributions through a clause or a special needs trust.
5. Spendthrift Clause: The trustee can distribute money to the beneficiary instead of the person receiving it all at once.

It is best to customize a will or trust to your specific situation. This is why working with an experienced estate planning and probate attorney is important. They can help you determine exactly who will receive your assets and ensure they spend your money in the best possible way.

Oak Brook Estate Planning Attorney

If you have questions about adding clauses to your will or trust, an experienced estate planning lawyer can advise you on the best options for your situation. To talk to a qualified estate planning attorney in Chicago or Oak Brook, contact the Estate & Probate Legal Group at 630-864-5835. 

Areas We Serve: Cook, DuPage, Kane, Lake and Will counties.