A will is often the first document people think about when deciding how their estate should be handled after their death. It provides a way to state how certain property should be distributed after your death and allows you to nominate someone to administer your estate.
While a will is an important part of an estate plan, relying on it alone may leave important gaps when it comes to securing your legacy and protecting the people who matter most to you.
A will may not cover every asset you own
Some assets pass outside the will. Life insurance, retirement accounts, payable-on-death accounts and some jointly owned property may transfer according to beneficiary designations or ownership rules. Even with a will, your beneficiary designations and how your property is titled should be consistent with your overall estate planning goals.
A will cannot plan for incapacity
Planning for incapacity is an important part of estate planning. You want to know that someone you trust can step in to manage your financial affairs or make health care decisions if you become unable to do that for yourself.
A will generally cannot provide that authority because it takes effect only after your death. Without proper planning, your family may have to turn to the court for authority to manage certain financial or personal matters on your behalf if you become incapacitated.
Your family circumstances may require more than a will
A will may not give you the flexibility to determine how and when certain assets should be distributed or managed after your death. For instance, leaving property outright to a young beneficiary through a will may produce a very different result than placing that property in a trust with specific instructions for how and when it should be distributed. A trust can establish rules for managing property after your death, unlike a will.
If you’re looking to craft a comprehensive estate plan, reaching out for professional estate planning guidance can help you look beyond a will and build a plan that reflects your assets, family circumstances and wishes.