Writing a will is one of the most important things you can do to ensure your loved ones are taken care of after you’re gone. Most people always seem to focus on the big things, but this can often mean that the smaller details go unnoticed, making the passing of your estate much more difficult than it needs to be.
In this post we’ll go through the most important details many people overlook when writing a will.
Naming a Backup Executor
Many people take the time to carefully select an executor, but they often forget to name a backup. Life is unpredictable, and the person you choose might be unable or unwilling to fulfill their duties when the time comes.
If your chosen executor becomes incapacitated, passes away, or simply declines the responsibility, your estate could end up in legal limbo.
Digital Assets and Online Accounts
In today’s digital world, it’s easy to forget about online accounts, passwords, and digital assets when drafting a will. Social media profiles, email accounts, cryptocurrency, and cloud storage are digital assets that all need to be included. If not accounted for, your loved ones could struggle to access important information, close accounts, or safeguard sensitive data.
Specific Instructions for Personal Items
It’s common to focus on major assets like real estate and financial accounts, but smaller personal items can carry sentimental value that’s just as important. Family heirlooms, jewelry, collectibles, and even personal letters often lead to disputes among loved ones if they aren’t clearly assigned.
Guardianship for Pets
Many pet owners assume their loved ones will automatically care for their furry friends, but without clear instructions, pets can be left in limbo. If you want to ensure your pets are cared for properly, it’s crucial to name a guardian.
Not having a designated caretaker can result in your pet ending up in a shelter or with someone unable to provide proper care.
Funeral and Burial Wishes
While it might seem unnecessary to include funeral preferences in a will, it’s actually a crucial detail that often gets overlooked. Many families are left guessing about their loved one’s final wishes, which can lead to disagreements and emotional stress. By specifying your preferences, you can help your family avoid making hasty decisions under emotional distress.
Updating Beneficiary Designations
Your will does not override beneficiary designations on life insurance policies, retirement accounts, and other financial assets.
It’s important to review and update beneficiary designations regularly to ensure they align with your current wishes and reflect any life changes. When you keep these records up to date, you can prevent legal battles and ensure your assets go to the intended recipients.
Business Succession Plans
If you own a business, failing to include a clear succession plan in your will can create chaos for your employees, partners, and loved ones. Without clear instructions, your business could face legal issues, financial instability, or even closure.
Handling Outstanding Debts
It goes without saying, but outstanding debts can create confusion and stress for your loved ones if they aren’t properly addressed in your will. Many people forget to outline how their debts should be paid and from which assets, which can lead to unexpected financial burdens.
Charitable Contributions
If charity is important to you, forgetting to include charitable contributions in your will can mean missed opportunities to leave a lasting impact. Think about designating specific charities and amounts in your will to ensure that your contributions are honored and that your legacy reflects your values.
Special Needs Provisions
Families with special needs dependents often overlook the importance of including detailed provisions in their wills. For example, leaving assets directly to a dependent with special needs could unintentionally disqualify them from government assistance programs.
Instead, setting up a special needs trust and appointing a trustee to manage the funds ensures your loved one receives the care and financial support they need without jeopardizing their benefits.
Providing Access to Financial Accounts
One thing people often forget to include is instructions on how their loved ones can access financial accounts after their passing. Without proper guidance, your executor may face unnecessary delays and complications in managing your estate.
But by keeping a list of account numbers, contact information for financial institutions, and any necessary passwords in a secure location, you can ensure a smoother transition.
Addressing Taxes and Estate Planning
A crucial detail that often goes unnoticed in wills is how taxes will be handled. Estate taxes, property taxes, and inheritance taxes can take a significant portion of your assets if they aren’t planned for properly.
Outlining Care for Elderly Dependents
If you’re responsible for an elderly parent or relative, their care arrangements should be clearly addressed in your will. Without specific instructions, your family may struggle to determine who should take responsibility and how their care will be funded. By setting up a trust or appointing a guardian, you can provide reassurance that their needs will be met.
Clarifying Ownership of Shared Property
Jointly owned property can be a major source of confusion if not clearly addressed in your will. If you co-own property with siblings, business partners, or even friends, it’s crucial to outline what happens to your share after your passing. When you make these details clear, you help to avoid disagreements and unnecessary legal challenges.
Documenting Sentimental Wishes
Beyond material possessions and finances, many people have sentimental wishes that they fail to document in their will. While these wishes aren’t legally binding, they offer a personal touch that can help your family honor your legacy in a way that reflects your true intentions.
Ensuring Privacy and Security
After a person’s passing, their personal information and sensitive documents may be at risk of exposure if not handled properly. Many people overlook the importance of securing their sensitive data, such as Social Security numbers, medical records, and legal documents. Without clear instructions on how to handle and dispose of this information, there is a risk of identity theft or misuse.