What Are the Biggest Mistakes in a Will?

I created my first will in my 20s. I have updated my document several times as major life events occurred.

A will is a legal document specifying who should receive someone’s assets after they pass away. When done correctly, a will ensures the assets are divided according to the person’s last wishes.

Understanding the biggest mistakes people make when creating a will helps ensure the validity of the document. Working with an attorney can be beneficial.

The following are the most common mistakes to avoid when creating a will.

Not Creating a Will

Every adult should have a will, regardless of age or income. This document determines which loved ones receive their assets, care for their pets, and serve as their children’s guardians, as well as which charities receive donations.

Having a will can speed up probate, which helps the court distribute the assets. This process can save time and money and provide loved ones with peace of mind, knowing the person’s wishes are being followed.

If an individual passes away without a will, their property will be distributed to their heirs according to state laws. As a result, the loved ones the person wanted to inherit their assets might not receive them.

Not Appointing an Executor

An executor carries out an individual’s final wishes after the person passes away. These tasks include:

• Contacting the appropriate government agencies

• Initiating the probate process so the court can validate the legitimacy of the will

• Assisting with funeral arrangements

• Reporting the death to the person’s creditors

• Maintaining the estate until all assets are distributed

Appointing a trusted family member or friend to be the executor of a will is recommended. Updating the executor if the person passes away, moves out of the country, or becomes incapacitated is encouraged.

Improperly Executing the Will

Typically, a will must be signed in front of and by two witnesses who are not named in it and will not inherit anything. After the person passes away, the witnesses might be called to court to confirm that the individual created the will.

Improper signing and witnessing could lead to the will being challenged in court and potentially invalidated. In this case, the estate would be treated as if there were no will, and state law would determine who inherits the assets. This scenario could become an issue if assets were left to a charity, which cannot inherit assets through state intestacy laws.

Not Updating the Will

A will should be updated to reflect the individual’s life and the people in it. Experts suggest reviewing and updating the document every 3 to 5 years or after major life events, such as the following:

• Purchasing a home or other real estate

• Moving to a new state

• Getting married or divorced

• Having a child or grandchild

Forgetting to Include Certain Assets

All assets should be included in a will, including the following:

• Real estate

• Vehicles

• Jewelry

• Art   

• Family heirlooms  

• Businesses

• Bank accounts

• Life insurance payouts

• Health savings accounts (HSAs)

• 401(k)s

• Individual retirement accounts (IRAs)

Not Including Instructions for Digital Assets

A record of digital accounts should be included in a will for loved ones to access:

• A digital password manager or digital vault should be used to maintain online accounts and login information.

• A trusted person should be able to access the accounts after the person passes away to pay their bills and access tax information.

• A digital executor should be named to manage or close online accounts according to the instructions left.

• A list of digital photos, documents, and audio and video files, and what to do with them, should be included.  

Forgetting About Taxes

Taxes can impact the amount that loved ones inherit:

• The deceased person might owe estate taxes: This federal tax applies to a specific portion of the estate’s value, which could be phased out in 2025. Several states have an additional estate tax, which can impact the amount the estate owes after a person passes away.

• Heirs might need to pay taxes on the money they inherit: The amount owed depends on where the heir lives, the amount inherited, and their relationship to the deceased person. Several states charge an additional tax on inheritance.

• A financial advisor or tax planning attorney can help an individual pass along their assets in a tax-efficient way.

*This information is for educational purposes only.