What is commonly referred to as a 'last will and testament'?

A 'last will and testament' is a legal document that specifies how a person's assets and property are to be distributed after their death. This document allows individuals to articulate their wishes regarding their estate, including who will inherit specific items, properties, or sums of money. It also provides a way to appoint an executor to manage the estate and ensure that the directives outlined in the will are followed. Having a will is critical for ensuring that one's desires are honored and helps to prevent disputes among heirs or beneficiaries.

The other options refer to different legal instruments with distinct purposes. A contract for real estate pertains to agreements regarding the sale, purchase, or lease of property. A document outlining financial debts focuses on liabilities owed by an individual, while a lease agreement is a contract between a landlord and tenant regarding the rental of property. Each of these serves specific legal functions that are separate from the intent and provisions of a last will and testament.