Making a last will and testament is a smart decision and its part of estate planning. It tells your surviving loved ones exactly what your wishes are regarding your property and assets. However, there are some things that you can’t or shouldn’t include in your will. There are certain types of property you can’t include when making a will. If you do, then it won’t actually work like you think it will. Let me explain. Some types of property carry rules that govern what happens after you die. These rules are independent of your will, mostly because the nature of these types of properties is to name a beneficiary or avoid probate. Life insurance proceeds that have a beneficiary. In this case, like with the trust, the proceeds automatically go to the beneficiary. Retirement plan proceeds, including money from a pension, IRA, or 401(k). The forms for these plans contain a section for you to include your desired beneficiary. Proceeds from a payable-on-death bank account. The form for this account asks you to name your beneficiary. To change the beneficiary, you just fill out another form with your bank. Usually, the settling of the estate and the probate proceedings do not happen until after the funeral. The funeral arrangements are among the first matters of business after someone dies. Therefore, people may not even notice your funeral wishes stated in your will until after the funeral. Instead of leaving your funeral wishes in your will, talk with your loved ones about what you want. You can even make a separate document that spells out your wishes for the funeral, and give this document to the executor or executrix of your estate. A will is still subject to estate taxes. Instead of trying to use a will to avoid the often heavy estate taxes, explore different types of trusts that may work for your situation. Trusts escape a lot of tax subjection, because the property is not passing directly to the beneficiary, rather to the trust account, over which the beneficiary does not have complete control. Be careful with what conditions you put on gifts Not all of those conditions are legal. Conditions that include marriage, divorce, or the change of the recipient’s religion cannot be provisions in a legal will. Therefore, a court will not enforce them. You can put certain other types of conditions on gifts. Usually, these types of conditions are to encourage someone to do or not do something. For example, when making a will, you could say, “to Allison, if and when she graduates from college.” You could also say something like, “to Paul, so long as he uses the property as an art studio.” Just keep in mind that putting conditions on gifts can complicate things. Think about who will actually enforce these conditions, for how long, and does the enforcer get anything like an executor’s fee? Avoid leaving gifts or money for illegal purposes Although this is uncommon, some people will try and sneak in some sort of illegal condition or purpose for the gift. This would not make your will a legal will. For example, you wouldn’t be able to include, “to Mary, so long as she uses the property to grow marijuana,” or “To Jane, so long as she has her first beer before she is 21 years old.” Free Consultation with an Estate Planning LawyerWhen you are ready to make your will or if you have an estate issue you need help with, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
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The Attorneys Role in Commercial Transactions Is a Business Liable for an Employee’s Actions? via Michael Anderson https://www.ascentlawfirm.com/why-avoid-putting-some-things-in-your-will/
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About MeIn 2009 I was creating marketing channels for barbie dolls in Nigeria. Spent a weekend implementing dogmas in Naples, FL. Won several awards for writing about toy trucks in Mexico. Spent 2001-2007 analyzing deodorant in Pensacola, FL. Spent 2001-2004 researching heroin in Miami, FL. Enthusiastic about writing about clip-on ties in Naples, FL. Archives
June 2019
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