Drafting your will can be a complicated task, but it’s crucial to ensure it comprehensively addresses all your assets in a legal and efficient manner. This way, you can provide for your loved ones after your passing. So, make sure not to overlook these 16 common considerations when writing your will.
Choosing a trustworthy person to act as the executor of your will is crucial, as they will manage the administration of your estate. According to Money Helper, “up to four executors can act at a time, but they all have to act jointly. So it might not be practical to appoint that many people.”
Providing for Pets
If you have pets, you can include provisions for them in your will to make sure they are well looked after. This can include specifying a suitable caregiver and allocating financial resources for their care. You should make sure to discuss this with your chosen caregiver before documenting it in your will.
Including Digital Assets
According to Which?, 77% of people have digital assets of sentimental value and 35% of monetary value; despite this, only 5% have included them in their will. You can include assets such as social media accounts, cryptocurrencies, and online business interests in your will, specifying how you’d like them to be managed.
Specifying Funeral Arrangements
Outlining your funeral wishes can help provide your family with guidance and reduce stress during a difficult time. You could specify your preferences for burial, cremation, ceremonies, and other funeral details. It’s also best to keep these in a separate document, as often, your will won’t be read until after your funeral.
Naming a Guardian for Minor Children
It’s crucial to ensure you appoint a guardian for minor children in your will to ensure they are cared for by someone you trust in the event of your death. You should take time to consider the individual’s values, stability, and ability to raise your children.
Addressing Personal Items
By clearly specifying how you’d like your personal items to be distributed, particularly those with sentimental or monetary value, you can help avoid family disputes. You should make sure to regularly review and update this list as you acquire new items or relationships change.
Outlining Debts and Liabilities
It is important to note any debts or liabilities in your will, as well as provide instructions on how they should be paid. Legal & General says, “The executor, or administrator in the absence of a will, is responsible for settling any remaining debts using the assets of the estate.”
Updating Beneficiaries
Your will should be a reflection of your current circumstances and relationships, so it is important to regularly review and update this information. You should also make sure that any beneficiary designations on financial accounts are consistent with the information in your will to avoid disputes.
Including Charitable Donations
Leaving money to specific charities in your will allows you to contribute to causes that are important to you, even after your death. Irwin Mitchell says donations can also “reduce the amount of tax paid by the rest of your estate so your family can get the most out of their inheritance.”
Detailing Business Ownership
You should provide clear instructions on the succession or disposition of any business or business assets you own. This could involve a buy-sell agreement, the transfer of ownership to an heir, or other strategies. Make sure you carefully consider the impact of your death on the business and plan accordingly.
Clarifying Tax Implications
Understanding the tax implications of your estate is important to ensure your beneficiaries receive the inheritance you want them to without large tax burdens. You can work with a professional to include strategies that minimize estate taxes, ensuring your friends and family get the most from your estate.
Securing the Will
Ensuring your will is stored securely and is easily accessible by executors is essential. You could consider storing it in a safe deposit box, with a trusted lawyer, or in a secure, fireproof location at home. Make sure to inform the executor and a trusted family member or friend about the location of your will.
Addressing Joint Ownership
It’s important to take into consideration the form of joint ownership, as the distribution of your assets can be influenced. This is because jointly owned assets typically pass directly to the surviving owner. Make sure you clarify your intentions for jointly owned assets in your will or through other estate planning documents.
Creating a Living Will
A living will gives written, legal instructions on your preferences for medical care if you’re unable to make a decision for yourself. Mayo Clinic says this directive will “guide choices for doctors and caregivers if you’re terminally ill, seriously injured, in a coma, in the late stages of dementia, or near the end of life.”
Considering International Assets
If you own assets in multiple countries, your will should take into consideration the complex legal and tax considerations of each country. International estate planning might require multiple wills or specific strategies to manage the transfer of your assets; therefore, it’s best to get professional advice from an experienced attorney.
Seeking Professional Advice
Working with estate planning professionals can provide tailored advice and ensure your will is comprehensive and legally sound. They can help you navigate complex issues, update your will over time depending on changing laws or personal circumstances, and ensure it aligns with your overall estate plan.