Things to Avoid When Creating a Will

Creating a Will is the first step of estate planning. People tend to make some common mistakes when creating their Will. We’re here to give you tips what to include and not include in your Will.

Estate planning is essential, and you want to make sure you’re prepared before it’s too late. The two basic elements of an estate plan include a will and a trust. It is advisable that as soon as one reaches the age of 20, they should start thinking about an estate plan.

If you think twenty is too early to look at life from such a critical perspective, you are wrong. It is a misconception that an estate plan is only for adults and wealthy individuals. It is vital to understand that it is never too early to start thinking of an estate plan. The sooner you start, the better it is for you, as life is unpredictable, and you do not know if you will live to see another year, month, or even a day.

A will is an essential element of an estate plan, and you should start with creating a will.

Planning to create a will? Here is a list of things that you should avoid in your will!

TYPES OF PROPERTIES

Yes, a will has to include all your assets for division, but there are some properties that you must not add in a will. You cannot add a joint tenancy property in a will as according to the law, your share passes to the surviving joint tenant after you die.

Including the property that is a part of the living trust in a will is also not permissible. The property in a living trust is passed on to the beneficiaries and managed by a trustee. These properties are probate-free and you cannot include these in the will.

LIFE INSURANCE

The life insurance is another asset that you cannot make a part of your will. The life insurance proceedings pass on to the beneficiaries by law. Same is the case with retirement plans, proceedings and pension money.

Other properties or assets that you cannot include in a will includes stocks, benefits, and payable-on-death accounts.

FUNERAL INSTRUCTIONS AND DETAILS

A common practice among people is to include the funeral details into the will. This is a common mistake, but one should avoid it completely. The estate plan and probate proceedings take place after the funeral. Therefore, your will might not appear until after your funeral. Sometimes family members do not get to see the will before the funeral, so they will never know if you had funeral wishes. A better option is to draw up an entirely separate document and give it to your loved ones.

PROVISIONS TO ESCAPE ESTATE TAXES

Using a will to escape the state taxes is not wise. If you want to save your property from state taxes, probate, and transference taxes, your best option is a revocable living trust. A will is subject to state taxes.

You need to understand that a will cannot escape probate. Will accelerates the probate procedure, but it will not escape it.

LEAVING GIFTS WITH CONDITIONS

A lot of people tend to leave gifts for their loved ones in a will, and many put conditions on these gifts. It is essential to know that the court only recognizes legal conditions. Conditions such as marriage, divorce, change of religion are not legal, and the court will overlook these. Remember that you cannot leave gifts or money for illegal purposes.

CARE ARRANGEMENTS FOR SPECIAL NEEDS PERSON

If you have a special needs loved one, you cannot make care arrangements for them in your will. You may opt for a different type of trust for this purpose.

LEAVING GIFTS TO PETS

Different states in the country have different provisions about leaving gifts to pets. Animals do not have the legal capacity to own property is the majority rule in most of the states. You can choose a person to take care of the dog and leave the property to them, which can use for pet care.

 Hopefully these tips helped you while preparing your estate plan. It’s important to remember these common mistakes and make sure you avoid adding any of these things in your will if you want the court to give your will the credibility.