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Benjamin Franklin once said, "In this world, nothing can be said to be certain, except death and taxes." Considering this quote, we must compare an important topic in the world of estate planning: the difference between a simple Will vs Complex Will.
So, what's the difference between the two? Simple Wills and complex Wills both contain how a testator (the Will-maker) wants to distribute their assets and how to handle their death. But the main difference lies in their value and asset distribution conditions.
Let's explore them some more to see how each of them works.
Simple Will vs Complex Will: Let's Compare
| Simple Will | Complex Will |
| 1. Typically, a short document that contains the beneficiaries
and what they will receive from the estate 2.The deceased only has a few estates or properties, typically in one area or city. 3. Beneficiaries only include close family members and their spouse or children. So, people who made simple Wills were in their first marriage 4. May or may not include organisations that are listed as a beneficiary 5. Legal conditions apply if unforeseen circumstances arise. 6. Has an executor (or executors) to manage the estateHas provisions for guardianship for minor children 7. May or may not include a testamentary trust or any kind of trust 8. Will require minimum updates |
1. A longer document that contains family members, friends,
dependents, former or marital spouse or spouses and organisations
as beneficiaries. It may also be used create complex conditional
bequests for them. 2. The deceased has multiple estates and properties 3. This will always include highly detailed and specific conditions for asset distribution methods for beneficiaries 4. The deceased has appointed multiple executors 5. Contains detailed provisions for Trusts (e.g., Testamentary Trusts, Functional Needs Trusts) to protect assets or manage funds for vulnerable beneficiaries over time 6. Typically used to minimise estate taxes, provide long-term financial management, and protect all or complex assets from creditors 7. Used for sophisticated tax planning strategies to lessen the tax burden 8. Used if the deceased wants to obtain more complex assets or a complex business in the future that may operate after their death. 9. Will require constant updates |
Simple Will vs Complex Will: What Do They Have in Common?
While very different, simple and complex Wills share several things that make them similar in certain departments. Both of these Wills will usually include the following:
- The name of the executor(s)
- Who you want to leave the estate to, and how much you want to leave to each person/establishment;
- Who gets the estate if these beneficiaries are unable to accept
- Who will be the guardian of your minor children if the other parent has also passed;
- Charitable donations/gifts from your estate; and
- Who will look after your pet(s) when you pass
Who Needs a Complex Will?
Complex Wills are basically for very well-off people. This can include millionaires, billionaires, celebrities, veterans, global sensations, etc. They cannot use a simple Will since it is not enough to cover their assets. Even if they do create a complex Will, it must go through a number of reviews and updates to prevent consequences that may harm the assets and their beneficiaries.
What Kind of Trusts Are in Complex Wills?
In our topic about simple Will vs complex Will, we need to address how trusts work. Most trusts may exist in simple Wills, but they are more common in complex Wills. Let's see what these are:
1. Testamentary Trust Wills
You might make a testamentary if you don't want to award your estate to a beneficiary/beneficiaries in a lump sum.
Testamentary trusts let you leave your estate in a Trust. The Trust is then given to an appointed beneficiary who has complete control over it. The beneficiary can use the Trust in whatever way they see fit, but there are usually some instructions regarding how it should be split/used.
A testamentary Trust may include multiple trusts awarded to multiple beneficiaries. This is usually only done with substantially large estates, and it can be costly. It does come with tax advantages and asset protection, though. It can also mean less arguments and disagreements over the estate post-death.
Testamentary trusts are often given to children or those with disabilities. It ensures them a large sum that they can use as they see fit for schooling, medical bills, and more.
There are sometimes conditions to these trusts. For example, the Trust may be awarded to a child only once they reach 18 years of age and are ready to go to university. In that case, the Trust would be awarded when the child reaches 18 and not a day before.
2. Disability Trust Wills
In the same realm as the testamentary trust is the disability trust.
A disability trust will be used if the estate is going, at least in part, to a disabled beneficiary. It may contain conditions and directions just as a testamentary trust does. This leaves the disabled person with a trust to dip into whenever they need for medical costs, assistance, and whatever else they may need to thrive.
Simple Will vs Complex Will: What Is a Mutual Will?
A mutual Will is one entered into by both you and your spouse.
Mutual Wills are written in case one spouse dies before the other. The mutual Will ensures that the preferred beneficiaries are awarded the estate of each given partner on their passing. Mutual Wills cannot usually be changed after written.
Because these Wills are so set in stone, they're not often used. If you're considering signing a mutual Will with your spouse, talk to your solicitor first. It may be beneficial, but it may also be a bad move.
How Do I Know Which Type of Will I Need?
If you're planning on making a Will, you should always seek proper advice rather than going in blind.
Talk with a trusted Wills & Estates solicitor to figure out what kind of Will you need. They'll be able to set you in the right direction. They can go over your estate with you and make recommendations on who might get what and how.
Simple Will vs Complex Will: Can They Be Revoked or Changed?
Sometimes, you want to make changes to your Will. Maybe you've had a falling out with certain beneficiaries, or you have new assets to award. In this case, you can revoke your old Will and make a new one.
The testator can revoke their Will at any time. It's as simple as talking to your attorney and writing up a new one. The attorney may write a note in the new Will stating the old Will is null and void.
Believe it or not, a marriage usually automatically revokes a Will. It's assumed that if the testator gets married, they want to award their new spouse part of the estate. If you get married after making your will, you'll likely want to contact your attorney.
A Will is considered revoked if it's destroyed, lost, or written into the new Will by the attorney in charge. Considering this, it's important to keep track of your Will so it's not mistakenly revoked.
Can I Prepare My Will on My Own?
The biggest mistake with Wills is when you create them alone.
Preparing a Will on your own, whether it's simple or complex, almost always means leaving something or someone out. It also leads to more emotional choices rather than logical ones. Moreover, there's always the chance of writing something in that cannot be acted on lawfully. You don't want that, don't you?
If you're preparing a Will, the best course of action is to contact a trusted Wills & Estates solicitor.
JB Solicitors is an experienced and trusted estate planning law firm. We'll help you every step of the way, from managing your assets to writing the Will and finding a suitable executor. With us, you can rest assured your estate is in good professional hands
You can even get the process started online, right from home! This is the fastest, most affordable way to get started on your Will. We'll set up a meeting with one of our Wills & Estates solicitors for you, and give you a detailed list of instructions and the documents you need to finalise your Will.
Your Legal Experts in Estate Planning
Knowing the difference between a simple Will and a complex Will is just step one. Now that you're more familiar with the difference between a simple Will vs complex Will, it's time to get your estate planning out of the way. We are also adept at family law matters since beneficiaries are involved in Wills.
If you're in the Sydney area and need a reliable estate lawyer, contact us today. We'll ensure your estate planning is easy, fast, and written to your liking.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
