Making a will is one of the most important legal documents you’ll ever write, but a lot of people make mistakes that cost them money and make things harder for their loved ones. Knowing about these common mistakes can help make sure that your last wishes are carried out exactly as you want them to be.
- Not updating your will often enough
Your will should change as your life does. You need to update your will after big events in your life, like getting married, getting divorced, having kids or grandkids, making big changes to your assets, or losing beneficiaries. Many people write their will once and forget about it for decades. This means that the distributions are no longer in line with what they want or need.
You should look over your will every three to five years or right after a big event in your life. This keeps your document up to date and legally sound.
- Not being clear about how assets will be split up
Beneficiaries may not understand what a will means if it uses vague language. Words like “my jewelry” or “my valuable items” can cause fights over what was meant. Family members might not agree on which items belong in which categories if they don’t have clear descriptions.
When talking about your assets, be as specific as you can. Say “my diamond engagement ring, pearl necklace, and gold watch” instead of “my jewelry.” For things of value, add serial numbers, locations, or other information that can help identify them.
- Not naming other beneficiaries
A lot of people name primary beneficiaries but don’t name backups in case their first choice dies or can’t inherit. If you don’t pay attention to this, your assets may go to distant relatives you never meant to benefit instead of the people you want to benefit.
Always give each gift or bequest a name for the person who will get it if you die. Think about more than one option, especially if your main beneficiaries are older or in bad health or if you have a lot of money.
- Picking the Wrong Executor
The executor of your will has a lot of important jobs, like taking care of your estate, paying off debts, filing tax returns, and giving out your assets. Some people pick executors based on family hierarchy instead of ability, while others pick someone who lives far away or doesn’t have the time or skills to do the job.
Pick an executor who is honest, well-organized, and able to handle money issues. Think about where they live, how old they are, how healthy they are, and how they get along with your beneficiaries. It’s often a good idea to name a backup executor or co-executor.
- Not thinking about how taxes will affect things
Estate taxes, inheritance taxes, and income taxes can all have a big effect on what your heirs get. A lot of people don’t think about how taxes will affect their estate or who will pay them. This could mean that beneficiaries have to sell inherited assets to pay their taxes.
Talk to a tax expert or an estate planning lawyer to find out how your will will affect your taxes. To lower the tax burden on your estate and beneficiaries, think about giving to charity, giving gifts while you’re still alive, or setting up trusts.
- Not signing or witnessing correctly
There are rules in each state about how wills must be signed and witnessed. Some common mistakes are having beneficiaries serve as witnesses, not having enough witnesses present, or not following the right signing procedures. These mistakes can make your whole will invalid.
Find out what your state needs in order to carry out your will. Most states require two witnesses who are not beneficiaries, and some states require the document to be notarized. To make sure your will is legal, follow these steps exactly.
- Not including important digital assets
Many people today have important digital assets like online accounts, cryptocurrency, digital photos, social media profiles, and cloud storage. A lot of people forget to include these assets in their wills, which means that beneficiaries can’t get to important digital property or memories.
Make a complete list of all your digital assets, such as passwords and account information. You might want to think about using a digital estate planning service or writing down how to get to these assets in your will or another document.
- Giving away things that are not possible or realistic
Some people put gifts in their wills that may not be there when they die, like certain bank accounts that may be closed or property that may be sold. Some people leave more assets than their estate is worth, which makes it hard to figure out how to divide them up.
Check your assets often and make sure your will reflects what you own right now. Instead of giving specific dollar amounts for some gifts, give them as a percentage of the total. Also, include language about what happens if certain assets are no longer there.
- Not thinking about how family members get along
A lot of will writers only think about the law and not about family relationships and possible problems. This can cause arguments, hurt feelings, and expensive legal battles between survivors. Some people also don’t explain why they made certain choices, which can make beneficiaries angry or confused.
Think about how your choices about distribution might affect your family. You can’t make everyone happy, but careful planning and clear communication can help keep fights to a minimum. Think about writing a letter to explain your choices or talking about your plans with family members ahead of time.
- Trying to deal with complicated situations on your own
You can sometimes make simple wills without help from a lawyer, but when things get complicated, you usually need help from a lawyer. If you have a lot of money, a blended family, a beneficiary with special needs, or a complicated family situation, trying to plan your estate on your own may cause more problems than it solves.
Know when you need to get professional help. Estate planning lawyers can help you understand complicated laws, pay less in taxes, and make sure your will does what you want it to do. Getting professional help is usually not very expensive compared to the problems and costs that can come from a poorly written will.
Last Thoughts
It’s not just about dividing up your property when you write a will. It’s also about protecting your family and making sure your legacy lives on as you wanted it to. You can make a will that works for your family and gives you peace of mind for years to come if you avoid these common mistakes and get professional help when you need it.
Keep in mind that estate planning is not something you do once and then forget about. It should change as your life changes. Regularly reviewing and updating your will will help make sure it stays a useful way to protect your loved ones and carry out your last wishes.
