Writing Your Will? Don't Overlook These Crucial Details

Taking the step to write your will is one of the most important things you can do for your loved ones. It provides clarity and peace of mind during a difficult time. You clicked because you want to make sure you get it right, and our comprehensive guide will walk you through the essential items you should not forget to include.

The Foundation: Naming Your Executor

Before you decide who gets what, you must first decide who will be in charge of carrying out your wishes. This person is called the executor (or personal representative in some states). Your executor is responsible for a range of tasks, including locating your assets, paying off your final debts and taxes, and distributing the remaining property to the people you have named.

When choosing an executor, consider someone who is trustworthy, organized, and responsible. It does not have to be a family member, but it should be someone you are confident can handle the legal and financial responsibilities. It is also wise to name an alternate executor in case your first choice is unable or unwilling to serve when the time comes.

Identifying Your Beneficiaries

This is the part most people think of when they imagine a will: deciding who inherits your property. Your beneficiaries are the people, charities, or organizations that will receive your assets. It is crucial to be as specific as possible to avoid confusion.

  • Be Clear: Use full legal names and their relationship to you (e.g., “my son, John David Smith,” or “my niece, Jane Ann Doe”). Avoid vague terms like “my grandchildren,” especially if you might have more in the future. You can specify “my children then living” or list them by name.
  • Name Contingent Beneficiaries: What if a beneficiary passes away before you do? A contingent beneficiary is a backup who will inherit if your primary choice cannot. For example, “I leave my classic car to my brother, Robert Jones. If he does not survive me, I leave it to my nephew, Samuel Jones.”

A Detailed List of Your Assets

A will can only distribute assets that are clearly identified. Forgetting to include certain items can lead to disputes or cause them to be distributed according to state law rather than your wishes. Create a thorough inventory.

Tangible Personal Property

This includes all your physical possessions. While you might not list every single book or piece of furniture, you should specifically mention items of significant financial or sentimental value.

  • Real Estate: Include the full street address for any homes, land, or other properties you own.
  • Vehicles: List the make, model, year, and Vehicle Identification Number (VIN) for any cars, boats, or RVs.
  • Valuables: Specifically mention items like jewelry, art collections, antiques, or valuable heirlooms. You can create a separate “personal property memorandum” that you reference in your will, which can be easier to update over time.

Financial and Digital Assets

In today’s world, many of our most valuable assets are not physical. Forgetting these can create a huge headache for your executor.

  • Bank Accounts: List savings, checking, and money market accounts. Include the name of the financial institution.
  • Investments: Detail any stocks, bonds, mutual funds, and brokerage accounts.
  • Retirement Plans: Include 401(k)s, IRAs, and pensions. Note that these often have their own beneficiary designations that may override your will, so be sure to keep those updated as well.
  • Digital Assets: This is a modern and critical category. Include information on how to access cryptocurrency wallets, social media accounts (with instructions on whether to memorialize or delete them), valuable domain names, and online business accounts like PayPal or eBay.

Guardianship for Minor Children

If you have children under the age of 18, this is arguably the most important section of your will. You need to name a legal guardian to care for them if you and their other parent pass away. Without this designation, a court will decide who raises your children, and it may not be the person you would have chosen. Discuss this decision with your potential guardian beforehand to ensure they are willing to take on this profound responsibility. You should also name an alternate guardian.

Don't Forget Your Pets

Pets are often considered family, but legally, they are treated as property. If you want to ensure your beloved animal is cared for, you must make specific provisions. You cannot leave money directly to a pet. Instead, you can leave your pet and a sum of money to a trusted caretaker. In your will, name the person who will take ownership of your pet and consider leaving them funds for the pet’s ongoing care.

Instructions for Debts and Taxes

Your estate is responsible for paying your final debts and any taxes owed before assets can be distributed to beneficiaries. Your will should include instructions on how these expenses should be paid. For example, you can direct your executor to use a specific bank account or sell a particular asset to cover these costs. This prevents confusion and ensures that beneficiaries receive their intended inheritance without unexpected liabilities.

The Residuary Clause: A Safety Net

What happens to all the property you forgot to list or that you acquire after writing your will? A residuary clause solves this problem. This clause names a beneficiary (or beneficiaries) to receive any leftover assets not specifically mentioned elsewhere in the document. Without this clause, any forgotten property is distributed according to state intestacy laws, which might not align with your wishes. An example is: “I give all the rest, residue, and remainder of my estate to my spouse, Mary Smith.”

Frequently Asked Questions

Do I need a lawyer to write a will? While you can use online services or software like LegalZoom or Quicken WillMaker, consulting with an estate planning attorney is highly recommended, especially if you have a complex financial situation, own a business, or have a blended family. A lawyer can provide personalized advice and ensure your will is legally valid in your state.

What happens if I die without a will? If you die without a valid will, you are said to have died “intestate.” In this case, a probate court appoints an administrator to manage your estate, and your assets are distributed according to your state’s intestacy laws. These laws typically give property to your closest relatives in a predetermined order, which may not be what you would have wanted.

Can I change my will after I’ve written it? Yes, you can and should update your will after major life events like marriage, divorce, the birth of a child, or a significant change in your financial situation. You can make changes by either writing a new will that revokes all previous ones or by adding an amendment called a “codicil” to your existing will.