Avoid These 5 Common Mistakes
Forgetting to Update your Will
After experiencing a major life event, it’s important to always take another look at your last will. Not doing so can create serious issues and result in accidental inheritances. Any major event can affect the way your will operates, so regular checks are crucial to making your will exactly how you want it.
Overcomplicating a Gift
Life is constantly changing, so when a gift in a will has certain requirements that need to be met there can be unintended consequences. Keeping gifts as simple as is possible is important to keeping a will functional and avoiding unwanted complications.
Not Planning for the Death of a Beneficiary
If one of the beneficiaries of your will were to die, where does the money they were meant to receive go? It could be another beneficiary, a family member, a child, etc. but because there are so many potential alternatives, defining clear backups can streamline a will and keep the proceedings equitable.
Many financial accounts and insurance policies have designated beneficiaries for their funds should the original owner pass away. These designations are considered before your will, so even if a change to the will is made, a conflicting designation could still be followed if it is not also updated.
Not Having a Residuary Clause
Depending on the number of possessions being left in a will, sometimes items or funds can be forgotten and left out. A residuary clause can catch these items that have been forgotten or don’t have a beneficiary to go to, and ensure that none of your property is excluded from your will, even when not explicitly mentioned.