What You Need to Know about Separate Property and Marital Property While Making a Will

When it comes to making a will in Wisconsin, it is important to understand the differences between separate and marital property. Separate property refers to any possessions owned by either spouse prior to their marriage, while marital property includes anything acquired during their marriage. Understanding these distinctions can play a crucial role when determining who receives what upon death, and other factors when building your estate plan.

At Margerie Law, we help people just like you understand the ins and outs of estate planning in Wisconsin. In this blog post, we will discuss the differences between separate and marital property and how they affect estate planning. We will also provide an overview of the process for creating a trust in order to manage the distribution of certain separate properties more easily.

Looking for estate planning support in Wisconsin? Contact Margerie Law today. 

First, what is separate property and what is marital property? 

When estate planning in Wisconsin, it’s important to understand what constitutes marital vs. separate properties so that you can make the best decisions when crafting your will.

According to Wisconsin law, separate property is any property that was owned by either spouse prior to their marriage. This can include gifts received before the marriage, inheritances received before or during the marriage, or any real estate owned prior to the marriage with no contribution from both parties after its acquisition. Separate property may also include inheritance that was acquired by one spouse during the marriage. On the other hand, marital property is anything acquired by either spouse during their marriage that is subject to division in a fair and equitable manner upon divorce. This includes items such as bank accounts, investment accounts, and any increases in the value of the separate property if one spouse’s efforts or contributions were involved in increasing its value.

How do Separate Property and Marital Property Factor into Estate Planning? 

When it comes to making a will in Wisconsin, it is important to understand the distinction between separate and marital property when determining one’s wishes for how each estate should be distributed after you pass away.

For example, in regard to marital property (or jointly-held assets) such as real estate, bank accounts, or investment accounts (where the beneficiary is the other spouse), when one spouse passes away, these will automatically pass on to the other spouse. When both spouses pass away, you will need to determine who will receive these assets.

When drafting your will, ensure that all separate property is listed and its ownership clearly defined so that there is no confusion on who is entitled to receive what upon death. Additionally, if any pre-nuptial agreement relevant to the division of separate property exists, you may need to take a few extra steps. If separate property items have already been addressed in a court document then they do not necessarily need to be listed in the will again. However, an individual should consider if any changes need to be made since the agreement was initially drafted; for instance, if one spouse has more recently acquired any additional separate property since that time.

It is possible for individuals in Wisconsin to create a trust in order to manage the distribution of certain separated properties more easily. Such trusts can be used for assets such as life insurance policies, pensions, and retirement accounts. This can provide peace of mind in knowing that certain separate items are protected and distributed according to one’s wishes. An experienced estate planning attorney can help you determine whether a trust can be helpful to your situation.

Margerie Law: Your Wisconsin Estate Planning Experts

In short, it is important for a person drafting their will in Wisconsin to understand how separate and marital property factor into their estate so that they can effectively carry out their wishes upon death.

Working with Margerie Law for estate planning in Milwaukee, Elm Grove or any nearby communities can provide you with peace of mind. Our experienced team understands Wisconsin’s laws surrounding wills and trusts, and we have the expertise to ensure that you are prepared for any situation. We leverage our extensive knowledge and resources to develop creative strategies tailored to each client’s unique needs when drafting a will — from determining the optimal tax strategies to protecting your legacy. Whether you live in Milwaukee, Waukesha, or elsewhere in Wisconsin, working with the team at Margerie Law guarantees that you have expert legal advice and guidance throughout the process of creating your will.