What Assets Should Be Included in a Will?
Your last will and testament is the core of your estate planning efforts. From the property you own to the less tangible possessions you want to protect, everything in your life needs to be present in your will. Otherwise, you risk these items falling into the hands of the courts. If you want your belongings distributed in a specific way or to certain individuals, you need to make sure that no detail is left unaccounted for in these documents. Discover what assets you should include in a will and learn about some additional documents wills can encompass to protect your family.
Assets To Account for in Your Will
Consider this comprehensive list of assets you should include in your will.
Real Estate
Real estate holdings often represent the most significant portion of an individual’s portfolio. Specifying the distribution of your property—or properties if you have more than one—is essential. Be explicit in your will about who inherits each piece of real estate to prevent potential disputes and ensure the honoring of your wishes. It is also important to provide clear instructions on how to handle the expenses associated with these properties after your passing. These expenses may include property taxes, insurance premiums, and maintenance costs.
Some examples of properties to mention are:
Your primary residence
Vacation homes
Investment properties
Properties owned jointly with a spouse or partner
Rental properties
Any mortgages or loans related to these properties
Financial Assets
Financial assets encompass everything from bank accounts and cash to investments and retirement funds. When detailing these in your will, mention every account and investment, specifying beneficiaries for each. It’s equally important to review and update the named beneficiaries on these accounts regularly, as the designations in financial accounts often supersede those made in a will.
Remember to include information pertaining to the following:
Bank accounts (checking, savings, CDs)
Cash you have on hand
Investment accounts (stocks, bonds, mutual funds)
Retirement accounts (401(k), IRA)
Life insurance policies
Personal Belongings
The division of personal belongings can create unforeseen conflicts among family members. Consider creating a detailed list within your will that assigns specific items to designated individuals. This clarity can help in avoiding misunderstandings and ensuring that your personal treasures go to the right people. Additionally, note that while certain personal property may hold sentimental value, it might also hold a considerable monetary value. In these cases, consult an appraiser or financial advisor to accurately determine the worth of these items and ensure their proper distribution.
Examples of personal property include:
Jewelry
Artwork
Family heirlooms
Vehicles
Electronic devices
Digital Assets
Much of modern life revolves around the digital world. As such, you might accumulate substantial digital footprints that include everything from social media accounts to digital currencies. Specify how you want these digital assets managed after your passing, including whom you entrust with passwords and account access information. Offering clear instructions can prevent loss and confusion regarding your digital legacy. It’s also important to regularly review and update the login information for these accounts in your will, as passwords may change over time.
A few examples of digital assets include:
Social media accounts (Facebook, Instagram, X)
Email accounts
Online shopping accounts (Amazon, eBay)
Digital photos and videos
Business Assets
If you own a business, it is crucial to specify how you want it handled after your passing. This may include appointing a successor or outlining instructions for selling the business. It is also important to consider any debts or liabilities associated with the business when detailing its distribution in your will. Consult an attorney or financial advisor to ensure all legal and tax implications are considered.
Here are some business assets to keep in mind:
Business ownership
Intellectual property (patents, trademarks)
Contracts and agreements
Licenses and permits
Special Considerations for Those in Retirement
If you are retired, there are some special considerations you should keep in mind as you create your will.
Healthcare Directives
Along with the above assets you must include in your will, you should use this document to outline any healthcare directives. These guidelines detail your wishes regarding medical care should you become incapacitated. They are a set of standards for your loved ones and healthcare providers to follow, alleviating the burden of making difficult decisions during emotionally charged moments.
Beneficiary Changes
If you are of retirement age, updating beneficiaries on life insurance policies and retirement accounts is a critical step. These updates ensure that your assets go to your current chosen beneficiaries, reflecting changes in your life circumstances and relationships over the years.
Long-Term Care
You should use this chance to address plans for long-term care and associated costs. Whether it’s preferences for in-home care, assisted living, or specific medical facilities, including these considerations in your will can provide guidance for your family, ensuring your comfort and care.
Executors and Guardians
As you plan your will, you must designate trusted people to handle specific tasks.
Selecting an Executor for Your Will
Choosing an executor for your will is a decision you shouldn’t take lightly. This individual will be responsible for overseeing the distribution of your assets, paying any debts, and ensuring your will’s terms remain honored after you pass. Consider someone trustworthy, organized, and capable of handling this significant responsibility.
Appointing Guardians for Minor Children
If applicable, selecting guardians for your minor children is a critical decision. Your will should clearly identify those you wish to care for your children in your absence, considering the guardians’ capabilities and values, as well as your children’s needs. This choice ensures their well-being and allows you some say over their upbringing in the future.
Legal Requirements and Professional Help
Finally, consider the legal requirements associated with a will, and seek professional help to complete the process accurately.
The Legal Requirements for a Valid Will
Understanding your state’s legal requirements for drafting a valid will is crucial. While these requirements vary, commonly accepted principles include being of sound mind at the time of the will’s creation and having it witnessed by non-beneficiaries. Adhering to these requirements ensures your will’s legitimacy and enforceability.
The Importance of Consulting a Professional
Consulting a professional, such as a lawyer or financial planner, is incredibly valuable. These experts can provide personalized advice tailored to your unique situation, helping to structure your will in a way that best reflects your wishes and legal parameters. Their guidance can also extend to strategies for minimizing tax implications for your beneficiaries.
Creating a will is a final expression of love and consideration for your family and friends. By including all your worldly assets and the essential plans for your days ahead, you lay the groundwork for a comprehensive legacy. Consulting a professional can further refine your will, adapting it to your unique circumstances and ensuring its legality. Vancouver Wills and Trusts is a probate law firm in Vancouver, WA, that specializes in navigating the complexities of setting up and enacting a will. Reach out to us today for a personalized approach to preserving your legacy and protecting your loved ones.