What Is a Will?

A will is a legally recognized estate planning document that allows an adult or couple, referred to as a testator, to document instructions for how certain assets transition after death. The document may establish who will administer estate responsibilities, who may serve as guardian for minor children if applicable, what specific gifts should be allocated, and how remaining estate assets are distributed in equal shares or percentages.

A will does not automatically govern all financial accounts. Certain retirement accounts, pensions, and life insurance policies transition using beneficiary designation forms maintained directly with the institution or plan administrator. The will primarily governs assets that fall outside those designations or remain unassigned.

Why Will Power Estate Planning Matters in Retirement

Estate planning is often discussed alongside retirement planning because both center on long-term financial clarity, structure, and risk-aware decision-making. While a will does not replace retirement beneficiary forms or other transfer documents, it may provide structure for assets not governed by those designations and may document who has authority to carry out estate responsibilities.

Key considerations include:

Retirement Accounts Transfer Separately

Accounts such as 401(k) plans, Traditional IRAs, Roth IRAs, pensions, and employer-sponsored retirement benefits are not governed by the will itself. These accounts transition based on active beneficiary designation forms maintained by the plan administrator or financial institution.

A Will Governs Non-Beneficiary Assigned Assets

A will may govern real estate property, vehicles, personal property, business ownership interests, bank accounts without beneficiary assignment, family heirlooms, cash assets outside designated accounts, and digital assets when recognized under state law.

Executor Clarity Matters for Business Owners

For adults with business ownership interests, contractual obligations, or vendor relationships, a will may document who has authority to carry out estate valuation, oversee vendor or contractual wind-down responsibilities, and administer residual assets outside retirement accounts.

Guardianship Designation Prevents Court-Assigned Outcomes

A will enables parents or grandparents to formally document guardianship decisions for minor children. When this designation is left undefined, guardianship decisions are assigned by a court according to state legal frameworks rather than personal preference.

The 4 Core Components of Will Power Estate Planning

Most wills contain four primary sections:

1. Executors

Executors are responsible for assessing estate value, gathering assets, managing tax and debt responsibilities if applicable, carrying out documented instructions, and distributing estate assets to beneficiaries. Many wills name at least two executors in case the primary executor is unable to serve.

2. Guardians

Guardianship applies only to minor children. Before naming a guardian, testators may consider whether the person is willing to serve, understands the responsibility, and has confirmed ability to carry out guardianship obligations. If a guardian is not designated, a court determines guardianship.

3. Gifts

A will may specify monetary gifts, personal items such as vehicles or heirlooms, and conditional transfers that occur only when a beneficiary meets a defined condition, such as reaching a certain age. Gifts can also be designated to charitable or organizational beneficiaries when clearly documented.

4. Residual Estate Distribution

After individual gifts are assigned, the remainder of the estate includes all remaining assets not individually named. The testator may allocate those assets in equal shares or percentage splits. A common structure is equal estate shares among heirs or percentage allocation based on personal priorities.

Can You Create a Will Without a Professional?

In many states, a will does not legally require a lawyer to be drafted. Some adults use online templates, home-drafted documents, or handwritten holographic wills in states that recognize them. However, wills allow little margin for error because the testator cannot clarify intent after death. Formatting, witness, and signature requirements vary by state, and unclear instructions must be interpreted conservatively by courts.

Adults may consider working with licensed legal or financial professionals when the estate is high-value, business ownership or contracts are involved, family structure is complex, or guardianship or conditional gift transfers are being assigned. This is not a statement about outcomes, and no guarantees are implied.

Estate Planning and Retirement Planning Work Together

A will complements but does not replace other retirement and estate transfer documents, including retirement beneficiary forms, transfer-on-death bank designations, trust documents, powers of attorney, healthcare directives, and life insurance beneficiary designations. The will may govern residual estate assets outside those accounts and may document who carries out estate administration responsibilities, helping reduce ambiguity and improve financial clarity.