Here Are 7 Things You Should Leave Out Of Your Will In The US
Here Are 7 Things You Should Leave Out Of Your Will In The US if you really care about your loved ones
Maurie Backman Sun, October 13, 2024 Moneywise
Estate planning is one of the most important things you might do in your lifetime. But it can also be a bit complicated and, let's face it, uncomfortable. That perhaps explains why only 32% of Americans have a will, according to a survey from Caring.com, while 1-in-4 of those without a will don’t plan on getting one.
1. Specific Dollar Amounts
It's natural to want to leave your loved ones as much money as possible. But rather than commit to specific dollar amounts, you may want to work with percentages instead.
The reason? It's hard to predict how much your estate will amount to upon your death. You might leave your eldest child $500,000 thinking there will still be plenty of money left over for your remaining heirs. But if your estate only ends up being worth $550,000, you're limiting the amount of money your remaining beneficiaries get.
A better approach would be to distribute your assets in portions. You may, for example, decide to leave your eldest child a larger percentage of your estate because they're the person who's cared for you in a hands-on manner through the years. But that way, you're also not leaving your remaining heirs in the lurch if the value of your estate ends up being smaller than expected.
2. Account Passwords
You may be inclined to use your will as a means of giving your heirs access to your various accounts, and so you might think it's smart to include your bank and brokerage account passwords in that document. But that's a mistake.
Once you pass away, your will may go through probate, which is the process of proving its validity, before it’s executed. And at that point, it becomes a matter of public record. You don't want that information getting into the wrong people's hands, so a better bet is to share a list of passwords with your loved ones in a separate, private document.
3. Funeral Instructions
You'd think your will would be the perfect place to describe your ideal funeral. But there's a problem with this approach.
Your loved ones may not receive a copy of your will until after your funeral. So a better bet is to map out your wishes separately, whether in a document or verbally.
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