Individuals usually provide for their heirs through the use of various types of trusts, life insurance, wills, designation of beneficiary forms and other legal documents. But while a traditional estate plan can accomplish the bequest of virtually any tangible possession, it usually does not address such ethereal properties as ideas, philosophies, or other treasures of knowledge or wisdom that the testator (or, the person making the will) may wish to pass on to heirs. As a result, an increasing number of testators are making provisions to pass on some of the wealth of wisdom that they have accumulated throughout their lives with ethical wills. Read on as we cover this unique estate planning tool.

Leaving a Legacy
An ethical will is a document that contains the testator's personal - and often intangible - legacy, including the wisdom, experiences and other lessons that he or she would like to share with heirs before death. Ethical wills allow the testator to pass on memories to his or her heirs, as opposed to other legal documents that deal with passing on tangible assets. In short, while legal wills deal with the pocketbook, ethical wills come from the heart. They are generally considered to be the final personal message that the testator wishes to deliver to heirs while they are still alive.

Content and Form of Ethical Wills
In terms of content, ethical wills have no specific requirements of any kind that must be satisfied. They can be of any length and contain virtually any statement or expression that the testator wishes to include, such as an extended account of one or more life experiences, a song, a poem, a fictional story created by the testator, or an act or deed that he or she wants to acknowledged.

Other, more practical matters can be addressed in ethical wills as well. For example, they can offer an explanation of how and why the testator apportioned tangible assets to certain heirs. This can prevent future misunderstandings and resentment between heirs that may stem from any inequitable division of the testator's estate. (For more on dividing assets, read The Importance Of Estate And Contingency Planning.)

Ethical wills can be handwritten, contain spelling and grammatical errors, and still be far more meaningful to heirs than the most perfectly written legal will. And contrary to legal wills, ethical wills are generally read to the heirs by the testator, or by a designated speaker with the testator present. (For related reading, see Why You Should Draft A Will.)