Definition - What does Will Contract mean?
A will contract is a wills and probate matter; essentially, it legally obliges a person to leave an asset or beneficial interest in a property to a named beneficiary or more than one beneficiary. There are many reasons why such a contract may be legally drawn up in a person's lifetime. It is often seen in share purchase agreements, such as when a large shareholder of a company dies: the shares that were held by the person must be transferred to a specific third party, most likely the other business owners. Sometimes, an exchange agreement is made to make the beneficiary legally bound to pay a set sum to the estate in exchange for receiving possession of an asset.
Justipedia explains Will Contract
Businesses often want to legally ensure that the future of the stocks and their specific trajectory are known. A will contract is a general legally binding contract that has this effect. Property that has remained in a family for generations will also have this type of will contract attached to it to ensure that the inheritor is within the known and approved trajectory.