Wills are relatively powerful legal instruments. Testators thinking about the needs of their loved ones or the legacy they leave can use a will to determine what happens after they die. In some cases, a will might actually be the only estate planning document an individual actually requires.
Other times, a will is just the foundational document of a broader, comprehensive estate plan. Wills can include beneficiary designations and can nominate people to hold positions of authority, including the role of personal representative and the guardian who may care for surviving minor children.
There are certain legal matters that people generally cannot rely on wills to address. What issues should people leave out of their wills?
Life insurance matters
Some people use life insurance policies to fund a trust. They can provide instructions within the trust regarding the investment or distribution of insurance policy proceeds. A will is not the appropriate place to address life insurance.
People cannot nominate beneficiaries to receive the funds from a life insurance policy in a will. Doing so may give them a false sense of security. The appropriate way to designate beneficiaries for a life insurance policy is to update the beneficiary designation paperwork filed with the insurance company. If the will contradicts the insurance company’s records, the beneficiary designations, not the will, determine who receives proceeds from the policy.
Funeral and burial plans
Addressing personal preferences for a funeral service can be an important aspect of the overall estate planning process. However, a will is often not the right place to convey those wishes to others. Frequently, families and personal representatives administering estates do not review wills at length until after the funeral has occurred.
People may need to leave separate instructions regarding their burial and memorial service. They likely need to ensure that their close loved ones are aware of their preferences and where they have stored any documents related to a prepaid burial plot at a local cemetery or other funeral arrangements.
Understanding what issues people typically cannot address in their wills may help them avoid common estate planning mistakes. People often require a variety of different documents to achieve all of their estate planning goals.