23 Essential Items to Add to Your Will That Many Overlook
Creating a will is a crucial step in securing your legacy, but it’s easy to overlook essential details that can make all the difference. From naming guardians for your children to addressing digital assets, these critical elements ensure your wishes are honored. Without careful planning, even a well-intentioned will can leave loved ones with unanswered questions or unnecessary complications. Let’s explore the often-forgotten components that should be included in every will.
Naming a Guardian for Minor Children
One of the most critical elements to include in your will is naming a guardian for your minor children. Without this designation, the court will decide who takes care of your children if something happens to you that might not align with your wishes. This choice ensures that someone you trust will be responsible for their upbringing.
Setting Up a Trust for Minor Beneficiaries
A trust for minor beneficiaries is essential if you have young children or grandchildren who might inherit assets. This trust allows you to control when and how they receive their inheritance, protecting it until they are mature enough to manage it responsibly. Without this provision, they could receive a lump sum at 18, potentially leading to poor financial decisions.
Designating a Digital Executor
In today’s digital age, appointing a digital executor is something most people overlook but is increasingly important. This person will manage your online presence, including social media accounts, digital assets, and online subscriptions after your death. With so much of our lives online, failing to include this in your will can lead to confusion and potential loss of digital property.
Specifying Funeral Wishes
Many people forget to include their funeral wishes in their will, leaving loved ones to guess what you might have wanted. Whether you prefer a burial or cremation, or have specific desires for your service, it’s crucial to document these in your will. This clarity can alleviate stress for your family during a difficult time.
Appointing a Backup Executor
While most wills appoint an executor, it’s wise to include a backup in case the primary executor cannot serve. Life circumstances change, and the person you initially choose might be unable or unwilling to fulfill their duties when the time comes. Having a secondary executor ensures that your estate will be managed as you intended.
Including All Assets
Overlooking certain assets, especially digital or intangible ones, is a common mistake. From cryptocurrency to intellectual property, these assets need to be clearly outlined in your will. Without specific instructions, these valuable items could be lost or improperly distributed.
Addressing Debts and Liabilities
Many people forget to address how debts and liabilities should be handled in their will. It’s important to specify which assets should be used to pay off debts or whether they should be forgiven to prevent disputes among heirs. This clarity helps ensure that your estate is settled smoothly.
Providing for Pets
If you have pets, it’s essential to include provisions for their care in your will. Naming a guardian and setting aside funds for their care ensures that they are taken care of after you’re gone. Without this, your pets might end up in a shelter or with someone unable to care for them properly.
Listing Charitable Donations
If you wish to leave a portion of your estate to charity, make sure this is explicitly stated in your will. Charitable donations not only reflect your values but can also provide tax benefits for your estate. Be specific about the organizations and the amount or percentage of your estate you wish to donate.
Specifying Personal Property Distribution
Personal items with sentimental value, such as family heirlooms or collectibles, should be clearly allocated in your will. These items often hold more emotional significance than monetary value and can be a source of disputes if not properly addressed. Detailing who should receive these items can prevent family conflicts.
Outlining Care Instructions for Dependents
If you have dependents with special needs, it’s crucial to include detailed care instructions in your will. This might involve setting up a special needs trust or specifying the type of care and support they should receive. These provisions ensure that your dependents continue to receive the care they need.
Including Business Interests
If you own a business, it’s important to outline what should happen to your business interests in your will. Whether you want to pass the business on to a family member, sell it, or close it, these instructions should be clear. Without this, your business could face uncertainty, potentially affecting employees and other stakeholders.
Addressing Taxes
Taxes can significantly impact the value of your estate, so it’s important to include strategies for minimizing tax liabilities in your will. This might involve setting up trusts, gifting assets before death, or specifying which assets should be used to pay taxes. Proper planning can help preserve more of your estate for your beneficiaries.
Naming a Conservator
If you have a minor child or an adult dependent who might need a conservator, it’s important to name one in your will. A conservator will manage their financial and personal affairs if they are unable to do so themselves. Naming someone you trust can prevent the court from appointing a conservator without your input.
Updating Beneficiary Designations
Wills don’t automatically update beneficiary designations on accounts like life insurance, retirement plans, or bank accounts. It’s important to regularly update these designations to ensure they align with your current wishes and will. This step prevents discrepancies between your will and these accounts.
Specifying Asset Liquidation Instructions
In some cases, it might be necessary to liquidate assets to distribute your estate properly. Including instructions on which assets should be sold and how the proceeds should be distributed can prevent confusion and disputes. This is particularly important for large or unique assets, like real estate or collections.
Providing for a Spouse
If you’re married, ensuring that your spouse is adequately provided for is often a priority. This might involve setting up a trust or specifying certain assets that should be left to them. Clear instructions in your will can help secure their financial future.
Detailing Distribution of Residual Assets
After specific bequests are made, there may be residual assets left in your estate. It’s important to specify how these residual assets should be distributed, whether equally among heirs or according to other criteria. This ensures that no part of your estate is left unaccounted for.
Outlining Instructions for Digital Accounts
Beyond appointing a digital executor, it’s crucial to outline what should happen to specific digital accounts, from social media to email. Whether you want them deleted, memorialized, or transferred, clear instructions can prevent these accounts from being mismanaged. This helps protect your digital legacy and privacy.
Addressing Jointly Owned Property
If you own property jointly, it’s important to understand how this will be treated after your death and to specify your wishes in your will. Depending on the ownership structure, the property might automatically transfer to the co-owner, or it could be subject to your will. Clarifying this can prevent legal complications.
Including a No-Contest Clause
A no-contest clause is a provision in your will that discourages beneficiaries from challenging the will’s terms. If someone contests the will and loses, they might forfeit their inheritance. This clause can help ensure that your wishes are respected and that your estate is distributed according to your intentions.
Accounting for Personal Loans
If you have lent money to family members or friends, it’s important to address these loans in your will. You can specify whether the loan should be forgiven, repaid, or deducted from the borrower’s share of your estate. This clarity prevents misunderstandings and ensures fair distribution of your assets.
Regularly Reviewing and Updating Your Will
Life circumstances change, and your will should be updated to reflect these changes. Whether it’s a new marriage, the birth of a child, or the acquisition of significant assets, your will should be reviewed regularly to ensure it still aligns with your wishes. Regular updates help avoid outdated instructions that might no longer be relevant.
Josh Dudick
Josh is a financial expert with over 15 years of experience on Wall Street as a senior market strategist and trader. His career has spanned from working on the New York Stock Exchange floor to investment management and portfolio trading at Citibank, Chicago Trading Company, and Flow Traders.
Josh graduated from Cornell University with a degree from the Dyson School of Applied Economics & Management at the SC Johnson College of Business. He has held multiple professional licenses during his career, including FINRA Series 3, 7, 24, 55, Nasdaq OMX, Xetra & Eurex (German), and SIX (Swiss) trading licenses. Josh served as a senior trader and strategist, business partner, and head of futures in his former roles on Wall Street.
Josh's work and authoritative advice have appeared in major publications like Nasdaq, Forbes, The Sun, Yahoo! Finance, CBS News, Fortune, The Street, MSN Money, and Go Banking Rates. Josh currently holds areas of expertise in investing, wealth management, capital markets, taxes, real estate, cryptocurrencies, and personal finance.
Josh currently runs a wealth management business and investment firm. Additionally, he is the founder and CEO of Top Dollar, where he teaches others how to build 6-figure passive income with smart money strategies that he uses professionally.