Creating a will is an essential step in ensuring your assets are distributed according to your wishes after you pass away. While it may seem like a simple task, many people make mistakes by including unnecessary items or omitting critical details.
In this guide, we’ll walk you through what you should and shouldn’t include in your will.
What Should Be Included in Your Will
A will is a legal document that outlines how your estate—your property, assets, and personal belongings—will be handled after your death. It allows you to:
- Decide who will inherit your property.
- Name a guardian for minor children.
Appoint an executor to manage the distribution of your estate. To ensure your will covers all important aspects, here’s what should be included:
1. Distribution of Assets
Your will should specify how your assets, such as real estate, bank accounts, investments, and personal items, will be divided among your beneficiaries. Being specific helps avoid confusion and potential conflicts after your death.
2. Guardian for Minor Children
If you have children under 18, it’s essential to name a guardian in your will. Without this, the court will decide who takes care of your children, and that might not align with your wishes.
3. Executor of the Will
The executor is the person responsible for carrying out the instructions in your will. Choose someone you trust, as they will handle tasks like settling debts and distributing your assets.
4. Payment of Debts and Taxes
Clarify how you want your debts and taxes to be paid from your estate. Typically, debts must be settled before assets are distributed, but specifying how this should be done helps smooth the process.
5. Personal Belongings
Items like jewellery, art, vehicles, and family heirlooms may not hold much monetary value but can have significant sentimental importance. Be specific in naming who should receive these items to avoid disagreements among your heirs.
What Should You Never Put in Your Will?
While you may be tempted to include everything in your will, certain things are better handled through other legal documents. Here’s what you should never put in your will:
1. Funeral Instructions
Including funeral plans in your will can lead to problems since wills are often read after the funeral has already taken place. It’s better to communicate your funeral wishes to family members or in a separate document that can be accessed immediately after your death.
2. Jointly Owned Property
Property you co-own with someone else, such as a spouse, cannot be passed through your will. Jointly owned property automatically goes to the co-owner upon your death. If you want a different arrangement, consider other estate planning tools.
3. Life Insurance and Retirement Accounts
Life insurance policies and retirement accounts, like 401(k)s or IRAs, are not governed by your will. These accounts have designated beneficiaries, which override the terms of your will. Make sure to keep your beneficiary designations up to date.
4. Business Interests Without Succession Planning
If you own a business, merely mentioning it in your will may not be enough. To ensure smooth operations after your passing, it’s crucial to have a separate business succession plan that outlines who will take over your role and how the transition will happen.
5. Illegal or Unethical Requests
Any illegal or unethical requests included in your will won’t be enforceable and could reflect poorly on your legacy. Stick to legal, straightforward instructions for your estate.
For a more detailed look at what not to include in your will, be sure to check out this guide on things you should never include in your will.
Common Estate Planning Mistakes to Avoid
Now that you know what to include and what to avoid in your will, let’s discuss some common mistakes to steer clear of:
1. Not Updating Your Will
It’s crucial to update your will after significant life changes like marriage, divorce, or the birth of a child. Outdated wills can lead to confusion and unintended outcomes.
2. Not Making Your Will Accessible
Ensure your will is stored in a place where it can be easily found by your executor or family members. Inform them of its location so that they can act quickly when the time comes.
3. Not Seeking Professional Help
While it’s possible to write a will yourself, working with an estate planning attorney ensures your will is legally valid and free from mistakes that could cause issues down the line.
Key Takeaways
Estate planning is about more than just writing a will—it’s about protecting your loved ones and ensuring your assets are distributed as you intend. By knowing what to include and what you should never put in your will, you can avoid common pitfalls and create a document that stands the test of time.
Taking the time to properly draft your will is one of the best ways to protect your family and leave a positive legacy.
