Making a will can be a difficult process. You have to think about who you want to inherit your assets and what you want them to do with them. There are some assets that you should include in your will. However, not all assets should be included in your will.
What are wills and assets?
A will is a legal document that outlines your wishes for your estate after you die. It names the executor of your estate, who has the responsibility to ensure that your wishes are carried out following the law. An asset is something of value that belongs to you, including money and property.
If you don’t have a will, the laws in your state will dictate who gets your assets and how they are distributed. This means that if you die without a will, your family may not get what you intended for them or their future may be uncertain.
That’s why missing wills insurance is so important. They can help ensure that your family gets what they need after you’re gone and that your assets are distributed the way you intended.
Here are some assets to consider, including within your will:
You should list your bank account along with full details of the accounts, including the account numbers. This is important to include as it will help the executor of your estate identify and access the bank accounts and then distribute it accordingly.
These types of accounts may include:
- Current Accounts
- Saving Accounts
Properties can include your home and other properties. It’s important to list all of your real estate holdings. This is done so that it is apparent to whom it will be given after your death. This is especially crucial where the individuals who live in your home will understand and carry out your desires without too much trouble.
Investments can be classified as stocks, bonds, or mutual funds. It’s important to include these assets in your will. You should list the name and number of each investment account and their current value so your executor can easily access them.
It’s crucial to remember to mention your business in your will if you own one. So that your executor can quickly access them and make sure they are handled appropriately after your passing, specify the name and address of the company, as well as their valuation.
You might not want to leave all of your belongings to a single person. Determine what you would like to provide to each individual. If you have any expensive personal assets, such as jewelry or artwork, include them in your will. You can also define how they should be allocated.
As there are some assets you should include, there are assets to avoid including within your will:
Stocks and bonds that have a designated beneficiary in your will should never be included. This is because these assets may not require the protection of a will. After all, they may already be transferred straight to the beneficiary without going through probate.
A living trust is a form of asset protection that is designed to avoid the probate process. Any property held in a living trust should not be included in your will as it can lead to confusion and conflict between the trustees and executors of your estate.
Life insurance policies provide a lump sum of money to the beneficiary upon your death. You should never include these assets in your will, as they may conflict with the policy’s instructions.
If you have any properties that are jointly owned by another person, they should not be included in a will. Jointly owned property automatically transfers to the other owner upon your death and does not require a will for distribution.
As you can see, certain types of assets should and should not be included in your will. It’s important to think about what assets you would like to pass on and how they should be handled after your death. In educating yourself about this, you can ensure that your family is taken care of and that all of your wishes are carried out properly.
Iskra Banović is our seasoned Editor-in-Chief at BlueFashion. She has been steering the website's content and editorial direction since 2013. With a rich background in fashion design, Iskra's expertise spans across fashion, interior design, beauty, lifestyle, travel, and culture.