Ask any estate and trust lawyer if a will a wonderful way to address one’s estate planning needs, and they will say, absolutely. However, they will also point out that a will is not a solution for every estate planning issue. There are certain estates planning situations for which your trust and estate attorney may suggest a solution other than a will.
In this blog, we have outlined certain situations where you can’t use a will.
A will won’t allow you to leave the following kinds of property:
In most cases, you can’t use a will to leave the property you own in joint tenancy. You can’t use the will to leave a property that you hold with your spouse under community property with the right of survivorship or tenancy by the entirety.
Similarly, the will won’t come in handy to leave a property that is under a living trust.
You can’t leave the proceeds of insurance policies if you are the named beneficiary. Besides this, money in the IRS, retirement plan, 401K plan for which you nominated a beneficiary, can’t be transferred to someone through a will.
Additionally, One can’t leave the fund in a payable-on-death account through a will.
Through a Will, You Can’t Leave Funeral Instructions.
Most often, the will is only found or read many days after a person has died. After a person dies, the surviving family members have to immediately take care of the funeral and memories services. Leaving funeral instructions in your will won’t help your loved ones honour your last wishes. Estate attorney near me suggest making a separate document for funeral instructions and precisely spelling out all the details. Ensure you tell the executor of the will where you have stored this document so that it can be retrieved when it’s time.
A Will Won’t Help You Reduce Estate Taxes.
Most people turn to estate planning as a solution to reduce real estate taxes. If your estate is eligible for federal estate taxes, you should work with your tax lawyers and devise a strategy to reduce your real estate taxes. While many kinds of trusts can help one postpone or reduce the tax, a will is not one of them.
A Will Won’t Help You Avoid Probate.
The mere mention of probate can induce migraines in many people. Probate is a court process that overlooks the distribution and administration of estates and assets. Estates that don’t have proper estate planning have to undergo a rigorous probate process. If you think that having a will is enough to avoid the probate process, you’re wrong. In fact, such estates spend a year in the probate court before it gets distributed amongst its legal beneficiaries.
One Can’t Use the Will to Leave Money for Illegal Purposes.
A person can’t leave money or fund for any illegal purpose.
A Will Can’t Arrange to Care for a Beneficiary With Special Needs.
A will is not an ideal option if you wish to leave money for someone else’s long-term care. The best way to address such a situation would be to create a trust solely for the beneficiary. With a special needs trust, you can ensure an extra stream of income for the disabled person.