Most people appreciate the need for a will. If you are considering creating a will, you need to ask two crucial questions: firstly, who should inherit your assets when you die? And secondly, what assets should you include or leave out of your will?
A properly drafted will can give you peace of mind knowing that your loved one’s future and, thus, your legacy are secured. A faulty will, on the other hand, can be a recipe for a protracted probate battle that can lead to a lasting rift amongst your loved ones. And one of the primary causes of will contestation is having the wrong assets in this estate planning tool.
Here are three assets that you would rather not include in your Nevada will:
Jointly-owned assets with rights of survivorship
If you invest in property with other parties, you can take out the title as tenants in common, tenants by entirety or as joint tenants by rights of survivorship. If you opt for a joint tenancy with the right of survivorship, then the property in question shall have a direct path to possession by the surviving joint owners. Thus, you do not have to include such property in your will.
Assets that are already in a trust
Any asset that is placed under a trust is governed by the trust’s instruments. Such assets automatically pass down to their designated beneficiaries without necessarily going through probate. Having such assets in your will can create snags during probate, especially if you name different beneficiaries in each tool.
Assets with pre-set beneficiaries
Pensions, 401(K)s, life insurance – all these usually have pre-arranged beneficiaries. As such, you do not have to include them in your will. Rather, you may update your preferences with the assets’ managers.
A will is probably one of the most important legal documents you can ever create. Find out how you can create a will that will effectively speak for you when you are no longer around to make crucial decisions.