Legal Definitions - counter wills

Counter wills, also known as mutual or reciprocal wills, are a pair of separate legal documents, each created by one of two individuals, that contain highly similar or identical instructions for how their assets should be distributed upon their death. These wills are typically drafted as part of an underlying agreement between the two individuals, where each person commits to disposing of their property in a specific, coordinated manner. The promise made by one person in their will serves as the basis for the other person's corresponding promise in their own will.

Here are a few examples to illustrate how counter wills work:

• Example 1: A Married Couple with Children

  Sarah and Tom, a married couple with two adult children, decide to create counter wills. Sarah's will states that all her property should go to Tom. If Tom has already passed away, then her property is to be divided equally between their two children. Tom's will is drafted with identical provisions: all his property goes to Sarah, and if Sarah has already passed away, then his property is to be divided equally between their two children. This arrangement reflects their mutual agreement to provide for each other first, and then ensure their children are the ultimate beneficiaries of their combined estate.

• Example 2: Unmarried Partners with Shared Property

  David and Emily have been unmarried partners for many years and jointly own a home and several investments. They do not have children but wish to ensure that the surviving partner inherits everything, and then, upon the second partner's death, their combined estate is split between a specific charity they both support. David's will leaves all his assets to Emily, and if Emily is no longer living, then to the charity. Emily's will mirrors this exactly, leaving all her assets to David, and if David is no longer living, then to the same charity. These counter wills formalize their shared intention for their assets, providing security for the survivor and fulfilling their joint philanthropic goal.

• Example 3: Siblings with a Family Business

  Maria and Roberto are siblings who co-own a successful family restaurant. They want to ensure that if one of them dies, the other takes full ownership and control of the business, and then upon the second sibling's death, the entire business and any remaining assets are left to their niece, who has expressed interest in continuing the family legacy. Maria's will bequeaths her share of the restaurant and all other personal assets to Roberto. Roberto's will contains identical provisions, leaving his share of the restaurant and all other personal assets to Maria. Both wills further stipulate that if the other sibling has already passed away, all assets are to go to their niece. This demonstrates how counter wills can be used to manage succession in a family business, based on a clear, mutual understanding between the co-owners.