For people drafting or updating their wills, preserving resources is often a top priority. They want to provide clear instructions so that people they select receive their most valuable assets after they die.
Many people prioritize naming beneficiaries for their homes and vehicles, as well as their financial resources. In some cases, people may make the mistake of including financial assets that do not belong in a will. They may unintentionally cause conflict among their loved ones, leave contradictory instructions or undermine the will by including inappropriate terms.
What types of resources generally should not be managed via a will?
Some accounts require special consideration
There are two primary scenarios that may make it inappropriate to include financial resources, such as a savings account, investment account or retirement account, in a will. First is when there is a co-owner. Typically, only assets that belong solely to the person who dies belong in their will.
The second scenario is when the testator creating the will already established transfer-on-death or payable-on-death arrangements. Financial institutions and investment professionals often accept documents that allow a specific beneficiary to assume immediate ownership and control of an account after a person dies.
The account then does not need to pass through probate court. If the instructions in the will contradict the instructions filed with the financial institution, there may be confusion and conflict related to property distribution.
Creating strong wills and maintaining an updated estate plan are both important steps for those who want to support their loved ones and establish a meaningful legacy. An estate planning attorney can help people avoid common mistakes, such as including contradictory information or the wrong assets in a will.
