Mistakes to Avoid in Making a Will
Among the common mistakes made when making a will are failing to designate two or more executors, leaving your business interests unattended, and not considering the proper beneficiary designation. You may want to read this article if you have not yet made a will. This article will provide you with the essential information you need to draft an effective will. Read on to learn about some of the most common mistakes people make when drafting a will.
Common mistakes in drafting a will
When you’re writing a will, it’s natural to think about death and distribution of assets. But this isn’t the only reason to create a will. You might be disabled and require your assets to support medical care. You might even outlive the people you wish to leave your estate to. Considering these circumstances, it’s important to think broadly and comprehensively when drafting your will. Otherwise, you’ll risk leaving your family in limbo.
Secondly, many people make the mistake of thinking they can create their will using a boilerplate template. While this might work for a small estate with few beneficiaries, there may be items you’d like to address that the template doesn’t cover. And even if the template meets your needs in most areas, it may not be appropriate for you. You need a template that fits your needs. That way, it’s able to avoid the common mistakes in drafting a will.
Importance of having two or more executors
Having two or more executors in a will is a smart choice that keeps you from creating a scenario where one child does not have the skills to fulfill the task. Named alternate executors may also avoid conflicts by preventing feelings of favoritism. Named alternate executors may be ideal for some situations, though. They may have different ideas or values than you do.
If you have two or more executors in your will, you can assign them specific duties. For example, you may name two business partners or a designated attorney. Each person must work together to carry out their duties, and may disagree with each other regarding the interpretation of the Will. If they cannot agree on the interpretation of the Will, disputes may arise and end up in court. When you name two or more executors, you’re also preventing an inefficient probate process. It’s also important to note that you have to co-sign checks and tax returns with all co-executors, which could make the probate process slow and inefficient.
Importance of addressing business interests in a will
There are many benefits to addressing your business interests in your will. A business owner has invested years in the firm and would naturally want it to continue after his or her death. However, the current laws surrounding probate proceedings can result in a haphazard distribution of business assets. Estate Planning Lawyer Moreover, probate proceedings can be expensive and lengthy, causing unnecessary delays in the operation of the business. Additionally, the probate process can negatively impact employees.
Importance of having a clear beneficiary designation
Choosing beneficiaries is one of the most important things to consider when making a will. Your wishes may change over the years, so it’s essential to revisit your designations often. Changes in tax laws and beneficiaries’ circumstances can affect the designations you make. Your designations should be reviewed annually and stored with your other important documents. For instance, you may want to make changes to your beneficiary designations once your children reach adulthood or your grandchildren become adults.
Once you’ve made your will, be sure to include a beneficiary designation for all of your assets. This designation is a legal document that determines which individuals will receive your assets when you die. It’s important to specify contingent beneficiaries, including spouses, and to specify predeccession rules. Your beneficiary designations should be updated whenever your circumstances change, such as a new job or divorce. In addition to naming beneficiaries in your will, you should also list the beneficiaries of bank accounts, 401ks, IRAs, and other financial accounts.