5 Crucial Details Many Seniors Forget to Include in Their Will

Writing a will is a thoughtful and important step in planning for the future. You’ve likely covered the major assets like your home and savings accounts. But a comprehensive will goes beyond the big-ticket items. Many people accidentally overlook smaller details that can lead to confusion, disputes, or unintended consequences for their loved ones. This guide will walk you through five commonly forgotten areas to ensure your will is as complete as possible.

1. Digital Assets and Online Accounts

In today’s world, a significant part of our lives exists online. These digital assets have both sentimental and financial value, yet they are frequently left out of estate plans. Forgetting to plan for them can lock your family out of important accounts and cherished memories.

What are digital assets? This is a broad category that includes anything you own or control in a digital format.

• Financial Accounts: Online banking portals, PayPal or Venmo balances, cryptocurrency wallets (like Bitcoin or Ethereum), and stock trading accounts.
• Social Media and Email: Facebook, Instagram, LinkedIn, and email accounts. Your executor may need access to close accounts, notify contacts, or save important information.
• Digital Collections: Photo and video libraries stored on services like Google Photos or iCloud, music libraries, and e-book collections.
• Intellectual Property: Personal blogs, websites, domain names, or any online business you might run.

How to include them: You should not list usernames and passwords directly in your will, as it becomes a public document once it goes through probate. Instead, create a separate, secure document called a “digital asset inventory.” In this document, list all your accounts, usernames, passwords, and any special instructions. You can then reference the existence and location of this document in your will and name a “digital executor” who is responsible for managing these assets according to your wishes.

2. Specific Instructions for Sentimental Items

While your will might divide up valuable assets, it’s often the items with sentimental value that cause the most friction among family members. A grandfather’s watch, a collection of family photos, or a specific piece of furniture might not be worth much money, but their emotional value is immense.

Failing to specify who gets these items can lead to painful disagreements. Your children might have very different ideas about who was “supposed” to get what.

How to handle sentimental property: Many states allow you to create a “personal property memorandum.” This is a separate document referenced in your will where you can list specific items of personal property and who you want to receive them. The benefit is that you can update this memorandum anytime you want without formally amending your will.

For example, your memorandum could state:

• “My wedding ring to my granddaughter, Jane Smith.”
• “My collection of vintage vinyl records to my nephew, John Doe.”
• “The antique rocking chair in the living room to my daughter, Mary Smith.”

Being specific prevents confusion and ensures your cherished belongings go to the people who will value them most.

3. A Plan for Your Beloved Pets

To you, a pet is a member of the family. Legally, however, pets are considered property. If you don’t make specific arrangements for them in your will, their future can be uncertain. They could end up with a family member who is unable to care for them or, in a worst-case scenario, at a shelter.

How to provide for your pets: You cannot leave money directly to a pet. However, you have two excellent options to ensure they are cared for:

1. Name a Caretaker: Clearly designate a person in your will who has agreed to take care of your pet. It is vital to speak with this person beforehand to make sure they are willing and able to accept the responsibility. You should also name an alternate caretaker in case your first choice is unable to do it.
2. Set Up a Pet Trust: This is a more formal and legally binding option. You can set aside a specific amount of money in a trust to be used for your pet’s care, including food, vet bills, and grooming. You name a trustee to manage the funds and ensure they are used as you intended for the benefit of your pet.

4. Backup Beneficiaries and Executors

It is common to name a spouse, child, or close relative as your primary beneficiary and executor. But what happens if that person passes away before you or is otherwise unable to fulfill their role? This is a scenario many people fail to consider, and it can create significant legal complications.

If your beneficiary is not available and you haven’t named a backup, the court will decide where your assets go based on state law, which may not align with your wishes. Similarly, if your executor cannot serve, the court will appoint one, taking the choice out of your family’s hands.

How to create a safety net: For every role and every gift in your will, name a contingent or alternate person.

• Contingent Beneficiaries: For each asset you bequeath, name a primary beneficiary and then a secondary (contingent) beneficiary. For example, “I leave my house to my son, Robert, but if he does not survive me, I leave it to my granddaughter, Emily.”
• Alternate Executor: Always name a successor executor. This is the person who will step in if your first choice is unable or unwilling to manage your estate. Make sure you ask both your primary and alternate choices for their permission first.

5. A Residuary Clause for Everything Else

After you have listed all the specific gifts for specific people, what happens to everything else? This could include new assets you acquired after writing the will, forgotten bank accounts, or any property not explicitly mentioned. Without instructions, these leftover assets can get stuck in a legal gray area.

This is where a “residuary clause” comes in. It is one of the most important parts of any will. This clause acts as a catch-all, dictating who receives the remainder of your estate.

How to include a residuary clause: The language is typically simple but powerful. For example: “I give all the rest, residue, and remainder of my estate, both real and personal, to my daughter, Sarah Jones.”

You can also name multiple people to share the remainder, such as, “…to be divided equally among my surviving children.” This simple clause ensures that nothing is left unassigned, providing a clean and complete distribution of your entire estate and preventing potential legal headaches for your family.

Frequently Asked Questions

What is the difference between a will and a living trust? A will is a legal document that outlines your wishes for asset distribution and guardianship after you die. It goes into effect only after your death and typically must go through a court process called probate. A living trust, on the other hand, is active while you are alive. You transfer assets into the trust, and a trustee you name manages them. Trusts can help avoid probate, which can be a lengthy and public process.

Do I need a lawyer to make a will? While there are DIY options available, working with an experienced estate planning attorney is highly recommended. Laws vary by state and can be complex. A lawyer can provide personalized advice, ensure your will is legally valid, and help you navigate complex situations like setting up a trust or planning for potential estate taxes.

How often should I review my will? It’s a good practice to review your will every three to five years, or after any major life event. This includes events like a marriage or divorce, the birth of a grandchild, a significant change in your financial situation, or the death of a beneficiary or executor named in your will.