Creating a clear and well-organized will can greatly ease the burden on your loved ones after you’re gone. However, certain assets and personal preferences are better left out of your will. Here are 17 things you might want to exclude to avoid causing confusion, unnecessary responsibility, or potential conflicts for your beneficiaries.
Homemade Legal Documents
The Guardian advises against ‘DIY wills,’ even if your wishes seem straightforward. Many online services offer cheap alternatives or free templates, but a will is a critical legal document and should only be made by consulting with an estate planning attorney. Homemade documents are frequently contested and often cause stress for your beneficiaries.
Vague Instructions
Your will is a legal document and not a way to express creativity or ‘test’ how well your beneficiaries know you. Your life circumstances can change significantly over time, so review and update your will regularly and always be specific, concise, and clear. Vague or outdated instructions can lead to legal disputes and misinterpretations.
Pets
Pets are living beings that must be properly cared for by a willing and capable person. While it can seem essential to allocate a caregiver, the Humane Society suggests ensuring that the person knows and agrees beforehand and can cope with the financial costs and responsibility. It’s also a good idea to have several options in case a potential carer backs out.
Sentimental Personal Items
Leaving specific items like jewelry, furniture, or artwork to named individuals in your will can lead to hurt feelings if other beneficiaries feel slighted. Consider having a separate, handwritten list of these cherished possessions and their designated recipients outside your legal will. This allows for a more personal touch in distribution and avoids potential legal challenges.
Funeral Wishes
Funeral or burial arrangements aren’t technically part of your will, although it can be helpful to have a written document outlining how you want your remains laid to rest. This can help alleviate stress for your loved ones during a difficult time and provide them with the comfort that they are ‘sending you off’ in a way you would have approved of.
Debt Obligations
Debts and outstanding loans cannot be willed away to people you dislike! They automatically become the responsibility of your estate and will be settled before your assets are distributed to your beneficiaries. Always be upfront with your loved ones about any outstanding debts to avoid surprises during the probate process.
Jointly Owned Assets
Assets owned jointly with another person (like property with right of survivorship or joint accounts) typically transfer automatically to the surviving owner upon your passing. According to PMW, there’s no need to include them in your will, and attempting to leave anything you don’t own (outright) to another beneficiary will only cause disappointment and confusion.
Digital Assets
Digital assets like social media accounts, YouTube channels, online photos, and cryptocurrency can be valuable but don’t typically appear in standard, written wills. Many platforms allow you to designate a beneficiary for your account upon your death. If you’re concerned, research the policies of the platforms you use and include management instructions in your will.
Assets to Young Children
Leaving assets directly to young children can create complications because they won’t be able to access the funds or property themselves until they reach adulthood. Instead, consider establishing a trust with a named (and trusted) custodian to manage the assets on the child’s behalf until they reach the designated age.
Private or Sensitive Information
Don’t forget that your will is a public document after your death, so never include sensitive information like Social Security numbers or explanations about private family matters, like past feuds or grievances. Store passwords, bank account details, or personal correspondence separately and ensure your executor can access them.
Exclusions Without Explanation
If you intentionally omit someone from your will who expects to receive an inheritance, it’s best to have a clear explanation. Redwood Financial states that simply crossing their names out or omitting them is insufficient and can lead to disputes and confusion. To prevent legal challenges, write a brief note in your will and a separate letter to the excluded individual.
Unrealistic Expectations
Your will should reflect the reality of your estate’s value, minus any debts, taxes, or fees. Making promises of inheritances you cannot fulfill, either before your death or in your will, can lead to disappointment and conflict among beneficiaries. Don’t exaggerate your wealth or make promises in your will that cannot be realized.
Active Business Interests
If you control an active business, don’t transfer business interests in your will, as it can be challenging to continue running such an enterprise while the will is in probate. You should think about the succession and transition of businesses before your death to ensure that someone is ready, able, and willing to take the reins.
Life Insurance
This type of asset has pre-assigned, designated beneficiaries who will always take priority over any will. High-net-worth individuals should be particularly cautious, as passing a life insurance policy through their will can result in the loss of as much as half of it to estate taxes. Use a life insurance trust instead.
Copies of Financial Documents
While necessary for reference during your lifetime, a list of physical copies of financial documents like bank statements or stock certificates isn’t required in your will. These documents are not transferable and can be safely disposed of after your death. Don’t include them in public records, like your will.
Location of Valuables
Disclosing the precise location of valuables (like stashed cash, heirlooms, or jewelry) in your will can be a security risk because you cannot control who sees the document after your passing. Instead, write a separate, secure document to inform your executor where they can find such valuables.
Conditions
Any gifts you make in your will should be unconditional; otherwise, you risk overcomplicating the process and potentially denying your beneficiaries entirely. Don’t state that an heir must stop doing something or complete a specific task in order to receive their inheritance. It’s better to make your wishes known outside the will and avoid legal interference.