When it comes to estate planning, understanding the difference between mirror wills and mutual wills is essential. Both options are commonly used by couples, but they serve different purposes and come with their own advantages and disadvantages. Let’s break down the key differences and help you decide which type of will might be best suited to your situation.
What Is a Will and Why Do You Need One?
A will is a legal document that sets out how you would like your estate to be distributed after your death. It can include clauses regarding the guardianship of minor children and preferences for funeral and burial arrangements. Whether your situation is simple or complex, a well-drafted will is essential to ensure your wishes are respected.
What Are Mirror Wills?
Mirror wills are commonly chosen by couples who want their estate plans to reflect each other. Essentially, one person’s will mirrors the terms of the other person’s will.
For example: Catherine and Paul are married with three children. Catherine’s will leaves her entire estate to her husband, Paul, and if Paul dies before her, the estate goes to their three children. In the same way, Paul’s will leaves his whole estate to Catherine, and if she predeceases him, to their children. While the terms are identical, each will benefits the opposite spouse.
Why Choose a Mirror Will?
Mirror wills are straightforward, practical and ideal for couples who share the same intentions regarding their estate. They can be easily updated if their circumstances change, making them flexible and practical for most families.
What Are Mutual Wills?
Mutual wills, on the other hand, are a more binding arrangement between two people. They are created when a couple agrees to make their wills together in an agreed form and enter into a legally binding agreement not to change their wills in the future. This means that after one partner passes away, the surviving spouse cannot alter the terms of the will.
Why Would You Consider a Mutual Will?
Mutual wills are particularly appealing in situations where:
- Couples have remarried and have children from previous relationships whom they wish to protect.
- There is a desire to ensure that assets ultimately benefit children from a first marriage, even if the surviving spouse remarries.
- One or both parties want the assurance that their wishes will remain intact regardless of future changes.
However, mutual wills can also be risky and inflexible. Once one spouse dies, the surviving spouse cannot change the will, even if circumstances evolve. They can only be altered in the event of a divorce or remarriage.
Which One Should You Choose?
Choosing between a mirror will and a mutual will ultimately depends on your unique circumstances and intentions. If flexibility and simplicity are your priorities, mirror wills are typically the better choice. However, if safeguarding specific beneficiaries (like children from a previous relationship) is essential, a mutual will may offer greater peace of mind.
At Ferraro & Singh Lawyers, we understand that planning your estate can feel overwhelming. That’s why we offer clear, practical advice to ensure your wishes are protected. If you need help drafting your will, our experienced team is here to guide you every step of the way.
The information provided in this article is general advice only. Given that each situation is unique, we recommend that you contact our wills and estates planning team if you have any questions about the information contained in this article. Our team can be contacted on (03) 9311 8911.
