Many people do not know about the things to be mentioned while leaving in a will. If you are writing a will, make sure that you own it at the time of your death. There may be some assets that you think you own it outright, but in legal terms, you do not. When you are writing a will, the assets have to be in your sole name or the gift will fail. Some examples are:
Jointly held assets (Joint Tenants)
If you have a joint account, you cannot leave this to anyone since it is jointly signed with the other person to whom it will automatically pass after your death.
If the insurance is a joint policy, then the other named holder will gain the ownership.
This is the biggest asset for most people. If the deed has two or more names, and you hold it as Important points mentioned while writing a willing tenant, then the other named tenant will automatically gain ownership on your death and you cannot leave this asset to anyone else. You can change the ownership to someone else in the deed so that the owner can get transferred to the other person mentioned in the deed. Moneyboat is the most overlooked aspect of estate planning and if it is not done correctly, then it will cause problems from a tax point of view or more importantly from funding long-term care.
If the investments are held jointly, then it will pass to the other person jointly signed with you. No one else can claim for it.
When writing your will, the first thing you need to do is to generate an Asset Register. Make a list of everything you own and put a value on it. Next thing is to determine how you own that asset. Is it solely owned by you or is it jointly signed with someone else? Once you have made your list then determine who you want to leave the assets to. There are different ways of leaving the assets.
- 1) You can leave them outright to a named beneficiary i.e. I leave my Bank account number 123456789 to my elder son X absolutely.
- 2) You can leave the assets to a group of beneficiaries in an equal split i.e. I leave bank account number 123456 to all my children in equal shares.
- 3) You can leave the same bank account number in unequal shares i.e. 50% to my elder son X, 25% to my younger son Y, and 25% to my daughter A.
- You can write wills in the same pattern for your insurance policies, house(s), and other investments.