Whether you own a multimillion-dollar empire or a small estate, you need a will. This basic estate planning tool lets you decide who receives which assets after you pass. If you die without a will, your family members will inherit property based on the state’s intestacy rules, which may be unrelated to your wishes.
To ensure an airtight estate plan, you should learn about common mistakes to avoid when writing your will. You don’t want an easily avoidable error, like overlooking a beneficiary or choosing the wrong executor, to undermine your hard work.
Mistake 1: Improper Execution and Ignoring Beneficiaries
If you create a will but ignore certain legal procedures, it’s as if you made no estate plan in the first place. For instance, in Michigan, you need two people over 18 to witness and sign your will, in addition to your signature. Not following requirements could mean anyone, like a disappointed family member, could challenge your will and turn estate distribution into a nightmare for everyone.
Ensure your will mentions all the people you plan to leave any property to. For instance, if you want to leave your estranged son Tom out of your will and instead pass assets to Tom’s daughter Jane, your will must state that. Otherwise, Jane would have no claim to your estate as a granddaughter.
Mistake 2: Not Updating Your Will and Overlooking Non-Probate Assets
Forgetting to make updates is high on the list of mistakes to avoid when writing your will. If you marry or divorce, welcome a child by birth or adoption, or acquire an important asset, you should revise your estate plan.
Writing wills and not bothering to update them can create ridiculous scenarios, like omitting your child as a beneficiary but still listing your ex-spouse.
Don’t forget non-probate assets, like retirement accounts and life insurance policies. Yes, these non-probate holdings pass directly to beneficiaries, but you should ensure your entire estate plan aligns. For example, if you’re newly remarried, name your new spouse as the beneficiary both in your will and on your life insurance policy.
Mistake 3: Neglecting Tax Considerations and Appointing an Inefficient Executor
Michigan is a comparatively tax-friendly state, with no estate or inheritance tax, per se. However, if your estate is larger than a certain threshold, it may be subject to federal estate tax.
Taxation is something you must consider when making an estate plan. Talk to an estate attorney if you aren’t sure whether your estate is taxable and how you may lower tax liability for your heirs.
You’ll need to decide whom you trust to wrap up your estate after you pass. Choosing a diligent, responsible executor can save a lot of stress, time, and money for everyone involved. Look into professional executors if no one in your family is up to the task.
Mistake 4: Being Too Vague or Too Specific and Ignoring Other Account Holders
Your will’s wording must be clear and unequivocal. For instance, if you want a family member to receive a certain asset, describe this asset correctly, with the relevant identifying information and physical details, if applicable.
Instructions that are too specific could also interfere with your will’s execution. For example, what about unlisted assets? Add a catch-all clause to address these and avoid inheritance disputes.
Finally, ask yourself whether your will considers jointly owned accounts and property. As a rule, joint ownership overrides a will, so take that into account when deciding who receives your assets. A seasoned estate lawyer can help ensure your will clearly states your wishes and includes all the important details.
Navigating the Will Writing Process With The TGQ Law Firm
Many people make critical mistakes when writing a will. Unclear wording, accidentally omitting beneficiaries or assets, forgetting a signature, and other common errors are much easier to prevent when working with an experienced Ann Arbor estate planning attorney like Terrence Quinn.
If you’re wondering when to start working on your will, the answer is right now. Contact us at The TGQ Law Firm to schedule an estate planning strategy session and learn about mistakes to avoid when writing your will.
Call (734) 707-3232 or complete our online form for a quick, free consultation.
Disclaimer: This article is not intended to be legal advice. Everyone’s situation is different and legal advice is only properly given after having reviewed your specific situation.
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