Writing a will is essential, but reflecting upon your own death and what will happen to your property once you’re gone can be uncomfortable.
Remember, your wishes may not be carried out if you die without a will. Therefore, it’s important that you create one to ensure your wishes are respected in your absence. But how do you ensure you include the right assets? Below are some assets you shouldn’t include:
Property with the right of survivorship
If you have jointly owned assets that come with the right of survivorship, your co-owner will become a full owner upon your death. Therefore, if your co-owner is alive, the asset cannot be left to someone else in the will.
Property placed in a trust
For property placed in a trust, a beneficiary usually receives the assets after the grantor’s demise. Therefore, if an asset is already placed under a trust, it should not be included in your will.
- Payable-on-death (POD) bank accounts
- Money in POD bank accounts should not be included in your last will since it automatically goes to the listed beneficiary.
- Money in a pension plan, Individual Retirement Account (IRA) and 401K Plan
If you already allocated a beneficiary, you should not include these items in your will. When you create a will and give these assets to another person other than the listed beneficiary in the will, the decision cannot override the initial beneficiary in the signed agreement forms.
Not including these assets may help prevent conflicts between your heirs and unnecessary confusion. However, seek legal assistance to ensure your assets are distributed according to plan.