Preparing for the future is an important component of making sure that you and your loved ones will be taken care of when you are no longer with them. One big part of estate planning is creating a will, a legal document that details how your assets should be distributed after you die. While creating a will allows you to retain some control over how assets should be divided after death, it’s also very important that you understand both what can and cannot be included within its contents. In this blog, we will look at both boundaries and possibilities of will planning while offering insights and guidance that will help in its creation and execution.
Can You Plan Out Everything in Your Will?
Estate and will planning can seem like an idealistic dream, yet there are limits to what can and cannot be included in a will. Let’s look at what can be planned out within your will:
Distribution of Assets
A will allows you to specify how your assets should be distributed after your death, giving you complete freedom over who receives what. This could include real estate, bank accounts, investments vehicles or anything of value such as sentimental items.
Appointing Guardianship for Minor Children
If you have minor children, one important aspect of creating a will should include designating someone to care for them should you pass away unexpectedly. Appointing such a guardian ensures their well-being and upbringing according to your wishes.
Naming an Executor
Your will provides you with the authority to name an executor, more commonly referred to as a personal representative, who will assume responsibility for managing your estate according to its wishes as stated in your will. This person plays a big role in seeing that your will is carried out correctly. Selection of an executor is of great significance as they will be charged with performing numerous administrative duties. Therefore, it’s important to choose someone whom you trust fully and who possesses the necessary expertise for managing an estate effectively. Executor duties may include gathering and valuing assets, paying any outstanding debts or taxes due, distributing property to beneficiaries and handling legal proceedings if needed. By choosing an experienced person as your executor, you can rest easy knowing your estate will be managed according to your wishes in an ethical and reliable manner.
Funeral and Burial Wishes
Your will is also an effective tool for communicating your preferences regarding funeral arrangements, burial, or cremation. Though not legally binding, a will provides important guidance to your loved ones for honoring and remembering you according to your wishes. Asserting your preferences regarding a memorial marker from Memorials.com brings comfort and clarity in an otherwise difficult time. Your funeral reflects your wishes and values accurately. Your will can provide clarity for those responsible and ensure they honor your memory in ways that reflect what was most meaningful for you.
What Can’t You Include in Your Will?
Wills give you great control over how assets and personal affairs are distributed. However, there are a few items which cannot legally be included. Being aware of these limitations ensures your estate planning efforts are comprehensive and legally valid. A lot of these focus on living arrangements immediately prior to your passing, like if you need assisted living near me.
Jointly Owned Property
If you own property with someone as joint tenants with rights of survivorship, such as a house or bank account, upon your death it will automatically pass to the remaining co-owner. Including it in a will isn’t possible. In such circumstances, joint ownership arrangements take precedence over will provisions. Joint tenancy ensures a seamless transfer of ownership without the need for probate proceedings or executing of wills. Understanding this limitation and considering other estate planning strategies for jointly held assets is important, including discussing ownership arrangements and beneficiaries with the co-owner.
Certain Types of Trusts
It is important to remember when setting up certain types of trusts, such as living trusts or irrevocable trusts, that their assets will be subject to the terms outlined by the trust agreements themselves rather than your will. Trusts provide a legal entity that manages and distributes assets according to its terms. Consulting an estate planning attorney is important in order to fully comprehend how your trust interacts with your will. Professional advice can provide invaluable assistance in aligning the intentions and provisions of your will with those of trusts, creating an estate plan with legal standing and comprehensive provisions. By getting expert assistance you can overcome the complexities associated with managing trusts so your assets are distributed as per your wishes.
Life Insurance and Retirement Accounts
Assets like life insurance policies and retirement accounts such as IRAs and 401(k)s have designated beneficiaries, so upon your death these assets go directly to them. Notably, these assets typically don’t fall under your will’s jurisdiction, unless there are no designated beneficiaries or your estate is the beneficiary itself. Designating beneficiaries ensures these assets bypass probate proceedings and are distributed according to your wishes. Reassessing and revising beneficiary designations regularly to make sure they reflect your current intentions is important to providing an efficient transfer of assets to those you’ve designated as beneficiaries. By keeping this step separate from your will, it will enable a seamless distribution of financial resources to their intended recipients.
Funeral and Burial Funds
While your will can outline your funeral and burial wishes, it’s important to bear in mind that funds allocated for these purposes may not immediately become accessible upon your death. Make separate arrangements or designate specific funds to ensure that all your funeral and burial wishes can be carried out swiftly and smoothly. By setting aside funds or prearranging, you can provide reassurance to your loved ones while fulfilling your final wishes with precision.
Conclusion
Writing your will is a big step in making sure your wishes will be carried out and your loved ones provided for upon your passing. While you have considerable control over how assets and personal affairs are distributed, there may be limits as to what can be included in a will and professional advice may help create one that represents both your intentions and provides reassurance for you and your loved ones. Estate planning is an evolving process and it’s better to review and update it frequently as your circumstances evolve.