What NOT to Include in Your Will: A Guide to Avoiding Common Mistakes
Sensitive information
It’s not uncommon to want to disinherit certain individuals if there are difficult relationships within your family. It’s important to remember however, that after probate is granted, your will is available to the general public and any sensitive detail shared may cause your loved ones additional distress. If you have particular feelings on those who should or shouldn’t be included in your will, consider communicating your wishes to your loved ones directly, writing a letter of wishes to accompany the will, or by appointing a trusted individual to handle these arrangements.
Your funeral arrangements
While it might feel like an appropriate place to include your chosen funeral arrangements, wills are actually often read after the funeral has taken place. You may want to make it clear within your will your preference over burial or cremation, but it is recommended that anything more detailed be kept in a separate document and specific instructions given to those who’ll be dealing with your estate.
Pension plans or insurance policies
Insurance policies and pension plans require the holder to name a beneficiary when they are taken out, so that person will automatically receive the assets once you die. Therefore, there is no need to mention them in your will. Consequently, it is important that these wishes are kept up to date and if you’d like to change the beneficiary, it's best to contact the relevant pension/insurance provider directly.
Information about personal items
There’s no need to list personal items or effects in your will as this can not only be onerous to keep up to date, but also could be a concern from a security perspective given that the information is made available to the public. Instead, these items can be listed under a general clause and then detailed more specifically in a letter of wishes, which can be kept private and easily updated.
Joint assets
Joint assets, such as property held in joint tenancy or joint bank accounts, should not be included in your will because they automatically pass to the surviving joint owner(s) upon your death, regardless of your will's instructions. Attempting to include joint assets in your will can lead to confusion, disputes, and legal challenges, as the terms of joint ownership supersede any provisions in your will. It's important to focus on coordinating your estate plan to account for assets that are not jointly owned and require specific instructions for distribution among your beneficiaries.
Who shouldn't you name as a beneficiary?
While obvious to some, a reminder that pets cannot inherit money! In addition, minors aren’t able to manage assets until they turn 18 and you need to be careful about naming someone who is receiving state benefits as a beneficiary, as this could impact the amount they are receiving from the government. In these cases, setting up a trust may be an option to consider. Trusts allow you to put conditions on how and when your assets are distributed to beneficiaries. They can also be a way of maintaining privacy and potentially reducing Inheritance Tax, though it is important you seek professional advice if you are considering this.
Estate planning can be complicated but it doesn’t have to be. Here at BFP, it forms a large part of our service. We’ll review your Will and Trust documents to ensure they reflect your wishes and , if necessary, work with trusted solicitors and tax experts to ensure your affairs are managed as efficiently as possible.
