Wills ensure that your wishes are known concerning how your estate is handled after your death. While they allow you to name beneficiaries, (among other functions), there are also matters that should not be included in your will. Below are a few potential issues to be aware.
Property Matters
There are rules restricting the types of property that may be bequeathed in your will:
• Joint Tenancy – If you own property jointly with someone else, you may not leave your part of it to a third party in the will. Your share automatically goes to the remaining joint tenant if s/he is still alive.
• Life Insurance – Any proceeds of life insurance policies you have automatically go to the individual listed as the beneficiary. You may not leave those proceeds to another party in your will if the person is not named in the policy.
• Living Trust Property – If you have property already included in a living trust, you may not leave it to someone else in the will. If you want to change the beneficiaries of the living trust, you must alter the trust.
• Retirement Plans – IRAs, pensions, and 401(k)s generally have named beneficiaries. If you want to change this, you have to do it through the proper forms, not in your will.
• Other Beneficiary Property – If you have bank accounts, investments such as stocks and bonds, or any other property for which you have already named a beneficiary, you may not leave the property to a different person in the will.
Funeral Instructions
You may include your wishes or instructions for your funeral in the will; however, in some cases, the planning and burial occur before the will is read, meaning your wishes may not be known until after the ceremony. The best option is to discuss your wishes with your spouse or loved one and/or create a document especially for that purpose. This will ensure that your wishes are followed.
Gift Conditions
When you leave gifts in your will, you will want to avoid placing illegal conditions on them. For example, providing stipulations concerning marriage or divorce, or requiring a change in religious affiliation is illegal, and will not be honored by the courts. You may, however, place stipulations requiring college attendance, or how a particular property must be used, but these conditions must be specific and reasonable.
Special Needs Care
You should not leave instructions for the care of someone with special needs in your will. These instructions should be left in a trust to ensure that the person’s needs and management are handled properly. There are specific trusts designed to address these situations.
Pets
You may not leave property or money to a pet in your will, because animals are considered property under the law. Instead, choose a person to care for your pet and leave a corresponding amount to him or her. Many states allow trusts to be set up for animals, making the pet trust a good option.
