Ten Things People Forget to Put in Their Will

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10 Crucial Items People Often Forget to Include in Their Will (financebuzz.com)

Don’t Forget These 10 Crucial Details When Crafting Your Will

Creating a will is a cornerstone of protecting your assets and ensuring your wishes are honored long after you’re gone. However, even the most meticulous planners can sometimes miss vital details, potentially causing unnecessary stress and unintended consequences for loved ones.

It’s essential to thoroughly review your estate plan to ensure nothing is overlooked. To help you with this, here are 10 commonly forgotten items people often neglect to include in their wills:

1. Digital Assets and Online Accounts

In today’s digital age, a will isn’t truly complete without addressing your online footprint. This includes clear instructions for managing or closing social media accounts, email accounts, cloud-stored photos and videos, and digital wallets.

Providing passwords and specific directives can significantly simplify this process for your executor. You might also want to designate someone to post a notice of your passing on various online platforms.

Additionally, specify how any monetized digital assets, such as blogs, e-books, online courses, or YouTube channels, should be handled.

2. Sentimental Items and Family Heirlooms

While these items may not carry significant monetary value, their emotional worth is often immeasurable. Clearly state in your will who should receive specific sentimental items and why.

While some may prefer to avoid this to prevent conflict, neglecting to do so can lead to decades-long disputes among family members over cherished heirlooms like the family Bible or wedding rings. Naming recipients in your will can preempt such disagreements.

3. Backup Beneficiaries

Life is full of unexpected turns. Circumstances can change, such as remarriage or the passing of primary heirs.

Naming secondary beneficiaries ensures your assets are distributed as intended, even if your primary choices are unable or unwilling to inherit. This simple step can alleviate financial stress for your family during an already difficult time.

4. Pets and Their Care

Your beloved pets rely on you, even after you’re gone. Designate a caretaker and set aside funds for their future care. This ensures your pets are well-provided for and prevents them from becoming a burden on family members or, worse, ending up in a shelter.

5. Outstanding Debts and Liabilities

Unpaid debts don’t simply vanish upon your passing. Specify how you want these liabilities, such as medical bills, personal loans, or credit card balances, to be managed.

In some cases, other parties may be liable for the debt (e.g., co-signed loans). In others, your estate’s executor must ensure payment from the estate’s proceeds.

Clear instructions can streamline this process and protect your wealth from unnecessary fees.

6. Business Succession Plan

For business owners, failing to include a succession plan can lead to chaos. Outline who will take over operations or how the company should be handled to ensure continuity and protect its value for your heirs.

Dividing ownership equally among children without considering their interest or skills can be a significant mistake. Openly discuss the family business with your children now to determine who is interested and capable of taking over.

7. Overseas Assets

If you own assets in other countries, international laws can significantly complicate estate matters. List these assets in your will and consult with an attorney specializing in international estate planning, including disclosing foreign investments to the IRS. Beyond simply listing assets, understanding how local laws, such as forced heirship statutes, might impact your estate’s distribution is crucial.

8. Charitable Giving

If giving back is important to you, your will can be a powerful tool for supporting causes you care about. Include details about any charitable contributions you wish to make, whether a lump sum or a portion of your estate.

9. Funeral and Burial Preferences

Help your family honor your wishes by including specific instructions for your funeral and burial. From the location to the type of service, these details can spare your loved ones the emotional and financial burden of making these decisions during a difficult time.

Consider specifying burial or cremation, the location for your remains, and the type of ceremony you’d prefer, along with any desired music, readings, or personal touches. Planning for the financial aspect, such as pre-paying for services or setting aside funds, can further alleviate unexpected costs.

10. Naming an Executor

Choosing the right executor is paramount to ensuring your will is carried out effectively. Select someone you trust to handle your estate with care and attention to detail.

While many parents choose their oldest child, they may not always be the best fit. If one child currently assists with finances and day-to-day decisions, they might be better suited for the role.

Regardless of who you choose, select wisely and provide them with a clear roadmap to make the process as smooth as possible.

The Bottom Line

A comprehensive will is essential for protecting your wealth, minimizing financial stress, and ensuring your wishes are honored. Avoiding the mistake of overlooking these commonly forgotten items can save your loved ones from unnecessary headaches and heartache.

It’s also crucial to remember that a will isn’t a one-and-done document. Regularly review and update your will to reflect your current assets, relationships, and intentions as life changes. Don’t leave anything to chance.