A last will and testament is one of the basic building blocks of an estate plan – and they’re definitely useful when it comes to having a final say about how your assets are distributed after your death.
However, wills aren’t the only tools available when it comes to estate planning, nor are they useful for every possible goal you may have. In fact, here are a number of things that you can’t do with a will:
1. Avoid probate
If you want to keep your estate out of probate, a will won’t help. Trusts and payable-on-death designations can skirt the whole process, but probate is the legal process through which a will is validated and executed.
2. Provide for your pets
You can appoint someone in your will to take care of your beloved pets when you die – but you can’t will your dog, cat or other animal any money for their care. Instead, you may want to establish a pet trust that can control the funds you set aside for your furry friends.
3. Arrange for your funeral
Your loved ones are going to be asked to make some rapid decisions about the disposition of your body after your death – and they probably won’t read your will until sometime later. It’s better to either preplan your funeral (so that you get exactly what you want) or spell out your preferences in a separate document that you give to your executor in advance.
4. Transfer certain kinds of property
Anything that has a direct beneficiary designation, such as property that you own with someone with the right of survivorship or life insurance proceeds with a valid beneficiary, are not controlled by your will. That’s why it’s important to make sure that you update those beneficiary designations periodically so that the right people inherit.
A complete estate plan is much more complicated than a simple will. Learning more about what else is available can help you better achieve your goals for your family’s future.
