Creating a will is an important part of getting your estate plan together. While you might assume that you can include anything you want in the will, there are some that shouldn’t ever be part of a will.
Making sure that you have everything in order when you’re handling estate planning enables you to pass things down how you intend when you pass away. One thing to remember is that you can only pass things to someone else once.
What assets should you avoid putting in your will?
You shouldn’t ever put in assets that are handled in another manner. For example, this might include:
- Trusts: You don’t need to include anything that’s included in a trust because those assets will be handled according to the terms of the trust.
- Assets with a payable on death designation: These are commonly used for financial accounts, such as investment, checking or savings accounts. Some retirement accounts also have a payable on death designation.
- Joint tenancy property: Joint tenancy property will go to the other individual who owns it with you.
- Life insurance policies: Life insurance policies are automatically paid to the beneficiary named on the policy.
- Your funeral and burial plans: While it isn’t an asset, you also shouldn’t put your final arrangement plans in the will. Your will may not be read prior to services, so putting instructions for the funeral or memorial service in the will would be pointless.
Anyone who’s working on estate planning should determine how they want things handled when they pass away. Taking the time to get everything spelled out in the estate plan helps to ensure that your wishes are followed with minimal stress for your loved ones.