The "Reciprocal" Will

An introduction to reciprocal wills

A reciprocal will is the most common type couples create when starting estate planning. Each spouse writes a will that mirrors the other's. If your combined estates fall below the federal limit, this may be all you need.

A reciprocal will typically covers:

• Naming an executor—usually your spouse, with an alternate named as backup.
• Payment of debts and taxes.
• Specific gifts of items, such as "My Beatles collection goes to Bobbie." But there's a practical problem: if you sell the collection before you die, does Bobbie get the cash instead? State law usually says no. And that can cause friction.

TIP: Avoid arguments by adding "if still owned by me at my death." This makes clear there's no gift unless you still own the item when you pass away.

• Distribution of everything else (the "residue"). This is whatever remains after the other gifts and expenses are handled.

Most couples phrase it like this: "Everything goes to my spouse if I die first. If my spouse has already passed, everything goes to our descendants in equal shares, per stirpes." (Per stirpes means if a child dies before you do, that child's children split their parent's share.) The two wills are mirror images.

A common question: what if someone you named as a beneficiary dies before you do? There's no single short answer, but without planning for it, disputes can follow.

The simplest solution is to name a contingent beneficiary for each gift in case the primary beneficiary dies before you.

Or you can specify that if a beneficiary doesn't survive you, their share or item goes into the residue and is distributed with the rest of the estate.