Legal Definitions - mutual will

A mutual will refers to two separate wills, or sometimes a single joint will, created by two or more individuals (typically spouses or partners) who enter into a binding agreement not to revoke or change their wills after the first person dies. This agreement is usually made as a separate contract, but it can also be inferred from the terms of the wills themselves. The primary purpose is to ensure that assets ultimately pass to specific beneficiaries according to a shared plan, even after one of the parties has passed away.

Here are some examples illustrating the concept of a mutual will:

• Blended Family Inheritance: Mark and Lisa are married, and both have children from previous relationships. They want to ensure that the surviving spouse is financially secure, but also that their respective children ultimately inherit from their biological parent's estate. They create mutual wills, agreeing that upon the death of the first spouse, the survivor will inherit all assets. However, they also contractually agree that the survivor's will cannot be changed to disinherit any of the children from either side. This ensures that after both Mark and Lisa have passed, the remaining assets will be divided among all their children as originally planned, preventing the surviving spouse from altering the inheritance plan in favor of only their own children.

• Protecting Shared Charitable Intent: Eleanor and Robert, a long-married couple, are deeply committed to a specific animal welfare charity. They execute mutual wills, agreeing that after both of them have passed away, their entire estate will be divided equally between their two children and this particular charity. This mutual agreement legally binds the surviving spouse, preventing them from later changing their will to remove the charity as a beneficiary or alter the agreed-upon distribution to their children, thereby guaranteeing their shared philanthropic and familial wishes are honored.

• Preserving a Family Legacy: Sisters Clara and Diana jointly own a historic art gallery that has been in their family for generations. They decide to create mutual wills. Their agreement stipulates that if one sister dies, the other will inherit the deceased sister's share of the gallery and related assets. Crucially, they also agree that upon the second sister's death, the entire gallery and remaining assets must pass to their niece, who has been apprenticing in the business and is passionate about continuing the family legacy. This arrangement prevents the surviving sister from potentially leaving the gallery to her own children who may not be interested in the business, or from selling it outside the family, thus ensuring their shared vision for the gallery's future is maintained.