Some assets seem like they should be included in your will, but they could complicate things for your relatives after you pass away. Avoid including these 18 things in your will that could invalidate it or cause a lengthy probate process.
Property Held with a Right of Survivorship
Any property you hold in a joint tenancy or that has the right of survivorship doesn’t need to be included in your will. When you pass away, the property will automatically pass on to your spouse or co-owner.
Funeral Plans
It may seem like an obvious choice to include your burial preferences and funeral plans in your will, but because your body technically isn’t property, it can’t be a part of your estate. It’s best to discuss your funeral wishes with your executor and arrange for the service to be paid out of your estate.
Business Interests
You can include your business interest in your will, but it comes with downsides. Trust & Will advises against including them because wills have to go through a lengthy probate process. A separate business succession plan is less likely to disrupt your business after you pass away.
Life Insurance and Retirement Funds
Although they may seem like suitable inclusions, including life insurance and retirement plans in your will could lead to confusion. When you die, the assets and funds of the two will immediately transfer to your designated beneficiary, regardless of what your will says.
TOD Property
Transfer-on-death (TOD) property can include bonds, stocks, vehicles, or real estate. There’s no need to include them in your will because they’ll automatically be passed on to your named beneficiary when you die.
Gifts to Relatives Who Can’t Manage Money
If you want to leave money to a relative you know struggles to manage it, your will isn’t the way to do it. A spendthrift trust will protect the money from being spent all at once. Nerd Wallet explains, “Rather than allowing the beneficiary to receive a lump sum, the trustee releases the money incrementally.”
Ambiguous or Vague Language
It’s important to include precise instructions in your will. Ambiguous or vague language that doesn’t clearly explain how to distribute your assets can render your will invalid and potentially open to litigation.
Passwords or PINs
Your will becomes a public document after you die when it’s filed with your local probate court, so usernames, passwords, and pins shouldn’t be included. Make a physical list or use a password manager that you can pass on to a beneficiary instead.
Outdated Information
It’s important to regularly update your will to reflect your current assets and relationships. Older wills with outdated information should be revoked to prevent confusion or potential legal disputes among your beneficiaries.
Property Held in a Living Trust
Living trusts are designed to avoid the often lengthy and contentious probate process by transferring your property to a benefactor upon your death. LegalZoom also notes that “you can always change the terms of a revocable trust during your lifetime by amending the trust documents but” not through a will.
A Witness Who Lacks Credibility
Your will could be invalidated if one of the witnesses lacks credibility. Minors, people with a vested interest in your will, and your spouse can’t be witnesses. Witnesses must also be fully informed about their roles.
Care Instructions for Dependents with Special Needs
It’s important to arrange care instructions for a relative with special needs, but your will isn’t the right place to do it. A special needs trust will hold your assets for a relative’s benefit without affecting their eligibility for benefits like social security payments.
Old State-Specific Laws
Most properly executed wills written in the state you used to live in will hold up in your new home state. However, some will be invalid in your new home state, so it’s important to revisit your will when you move and make any necessary adjustments.
Cash Gifts with Complicated Conditions
The conditions you put on gifts in your will may not be legally enforceable by a court. Conditions will complicate things for your beneficiaries and lead to unintended consequences, so consider creating a trust instead.
Pets
Including instructions for caring for your pet when you die in your will isn’t a good idea. The Animal Legal Defense Fund explains that because wills primarily deal with property distribution, it’s best to use a pet trust that “provides an extra layer of security and additional protections.”
Tax Evasion Schemes
Your estate will usually be subject to taxes and probate fees, so if you want to avoid them, you should create a trust instead of using your will. Different trusts can take assets out of your name and estate, becoming the trust’s property and going to your beneficiaries when you die.
Home-Made Amendments
DIY amendments, or “codicils,” may be tempting when you want to change your will, but they’re best avoided. Legal Zoom explains that “codicils sometimes create more problems than they solve, especially if they’re unclear or incorrectly signed.” They recommend choosing a new will instead to avoid any complications.
Property You Don’t Want in Probate
Probate is often expensive and time-consuming, leaving beneficiaries with a smaller inheritance. It’s better to explore options like living trusts and transfer-on-death deeds to avoid legal headaches after you pass away.
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