What to Include in and Exclude from a Will
As the saying goes: “If there’s a will, there’s a way.” This is especially true when looking at a last will and testament. This document will distribute your assets after your passing. And it can even go so far as to appoint guardianship over your children if they’re minors. But it’s important to know what goes into this process. After all, these are your assets, property and next of kin we’re talking about here. It’s worth understanding the impact that a will has in terms of distribution and estate planning.
Generally, your will can include your most valued possessions. This can be anything from real estate, vehicles, and precious items such as jewelry. And the things that are not included generally are assets with beneficiaries already established. However, that’s only scratching the surface. There is so much more to consider about what to include or exclude in a will.
✅Here’s what you should include in your will:
Whether you consider it an easy or daunting task to summarize all of your belongings and valuables (and determine where they are going), you should know that it’s a bit more than just pointing fingers. First, it’s important to think of who is creating the will. It can be done by you alone or you can enlist the help of an attorney. Next, start thinking of exactly what should be included through an asset inventory. Once all of your ducks are in a row, it’s time to start naming beneficiaries. Each asset granted to a beneficiary is in the form of bequests which can range from specific to general. If you have children, keep them in mind first and foremost. This can also apply to the nomination of guardianship in your will. Ensure your children or dependants have the most suitable candidate to take care of them.
You should also definitely consider appointing an executor. This person’s job is to carry out your will when the time comes. Try to make the best choice you can for this role as they are not only responsible for handling your assets but your estate as well. Therefore, trust is critical.
Trusts should also be considered. While trusts and wills are distinct documents, appointing a trustee or adding beneficiaries to a testamentary trust within a will can be a valuable tool for setting financial goals. For instance, the trustee appointed to your estate could be someone you trust to provide for your loved ones or manage your assets effectively. This can be particularly beneficial when planning for long-term care.
Summary of what to include:
- Creator
- Asset inventory
- Beneficiaries
- Guardianship
- Executor
- Trusts
❌Here’s what you should exclude from your will:
For as much as there is to be included in a will, it can come with enough to exclude. For starters, determine what is probate and non-probate. Non-probate assets are to be excluded as they can already have concrete designations or entitlement. This can include your life insurance and retirement funds as they will automatically go to the desired beneficiaries regardless of a will. Also, exclude assets held in joint tenancy due to rights of survivorship. This means that after your passing, the asset(s) will go straight to the joint tenant by law.
Consider trusts again. A living trust is another separate document that manages your assets and estate during your lifetime and not after. Therefore, they should be left out. This would also apply to anything in a trust whether revocable or irrevocable.
Lastly, funeral arrangements should be the last thing on your mind when creating your will since they could play out long beforehand and may or may not be handled by the executor.
Summary of what to exclude:
- Non-probate assets
- Living trusts
- Funeral arrangements
Special Bequests and Conditional Gifts
Gift-giving is a universal sign of love and care. So, who said you can’t include gifts in your will? Just like the gifts you give for birthdays or other occasions, they can come in many forms. The recipients of the gifts you include will be bequests. If you’d like to precise in bequests receiving certain things, such as money, you can include a specific gift. And if you’d want to be even more precise by giving terms and conditions to a bequest, such as a loved one graduating college or turning 18 years old, you can grant a conditional gift. You should also be mindful of residuary gifts. These gifts will be distributed after all other gifts or assets have been handled.
So, should gifts be included in a will?
✅YES!
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Digital Assets and Intellectual Property
Nothing is more apparent nowadays than the fact that we are living in a digital age. Therefore, digital assets hold just as much weight as physical. And it’s because of this rise in cyber formality that you should handle the inclusion of these assets properly. Be mindful of any accounts you have out there, whether it’s for money like cryptocurrency, real estate, or just social media. Leave no stone unturned. You can handle the distribution of digital assets by granting access to trusted beneficiaries.
So, should digital assets and intellectual property be included in a will?
✅YES!
Pets and Personal Belongings
Are you a cat or a dog person? Or, do you own other types of pets like reptiles? Either way, don’t leave them out! The inclusion of your pets is just as important as any other asset distribution or guardianship appointment. Your pets will require care when you’re gone, so consider providing the best care you possibly can by choosing the appropriate caregiver. Since our pets rely on us to live happily and comfortably, wouldn’t you want to continue giving them the best life possible even after you’re no longer with them? In addition to a caretaker, it would be beneficial to provide funds for their upkeep to any trust or beneficiary you appoint.
Are you also a sentimental person? Even if not, odds are, you could still have a handful of sentimental items. These valuable assets could be of great financial value or they could not be. Either way, they’re valuable to you. But they may also be valuable to your friends or loved ones. Personal items, like jewelry or instruments, could be equally important to your children as it is to you. It’s important to set an orderly well-thought-out plan ahead of time to handle the distribution of your personal effects. Keeping emotions in mind when including your belongings will help maintain a sense of contentment in the long run.
Pets and Personal Belongings?
✅YEP!
Legal Formalities and Review Processes
Your last will and testament is a legal document as it will help with the probate process after your passing. And as such, you can expect a notable degree of legality will be involved in the process of creating, reviewing and even validating your will. For example, almost all states will require two witnesses to validate the will. This means that two dependable individuals who are not family or beneficiaries must be present when you sign your will and they will then in turn both sign the will proving its legal ground. Notarizing your will is another way to fully validate your will. Though it is not always required depending on your state, it is still good practice to help legally back your document.
It is also worth considering that…life changes. Despite the extensiveness that goes into the making of a will, it can also be changed. It is also good practice to review your will every so often to determine if all your wishes are still in good standing with your loved ones and friends. Through the use of a codicil, a document serving as any amendment to your will, you may make alterations throughout your lifetime. You may even start from scratch and create a new will if your changes are significant enough. Either way, you always have options in the event that life decides to throw you a curveball.
Your Will
At the end of the day, what’s yours is yours for a reason. Your “big ticket” assets, most notably your estate, are intricate and delicate matters to be handled. Start thinking of who you may want to appoint as executor of your will, as well as any guardianship and trust provisions. Keep track of any assets that are jointly held or with pre-determined beneficiaries, and anything currently held within a trust, and be sure to keep them out of your will. While it may seem like continuously jumping through hoops to get all your property and belongings managed, there are plenty of options out there to offer help. For example, start consulting with your attorney to facilitate the planning of your will to its validation. It is never too early to start thinking about this. Once you factor in what’s to be included and excluded, you can alleviate any stress or mixed emotions brought about! Keeping it as structured as possible will help your loved ones out in the long run when it’s time to handle your estate.
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Originally published November 04, 2024
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