10 Mistakes to Avoid in Your Will

Every person should have a document that explains how they want their assets to be transferred after their inevitable death, but many people can make the error of either over complicating or over simplifying things. Here are 10 mistakes that are commonly made in will preparation. Note that although this article is from a South African publication, the advice is equally applicable in the United States.

• Don’t use overly complicated wording
  • This will decrease the likelihood of heirs contesting the validity of your will.
• Avoid overly complicated structures
  • A simple but properly drafted will is usually sufficient to ensure a speedy and cost-efficient transfer.
• Don’t become obsessed with tax savings
  • The proper needs of heirs and loved ones are often set aside for tax benefits, which are not always appropriate.
• Don’t create a burden for your executor or trustees
  • Example: trusts that are set up to last in perpetuity can be tricky to handle in the face of changing legislation.
• Allow for flexibility
  • Restricting the transfer or movements of assets may have more negatives for your heirs than intended.
• Choose your executor carefully
  • You can achieve substantial tax savings in the estate administration process by choosing your own executor.
• Your freedom of testation has limits
  • Claims for maintenance from dependents, a surviving spouse or claims in terms of the accrual system created by the Matrimonial Property Act [or, in the U.S., forced share statutes in common law marital property states and community property in community property states] will take precedence.
• Ask your children what they want
  • This can better create organic transfers of your assets. Consider if there are already any trusts in place for your children.
• Include your will as part of your financial plan
  • Your financial adviser and estate planners should be aware of each other’s work to limit misunderstandings.
• Don’t put it off
  • Death waits for no one, and the impact of having no will can be an intense impact on your family.

See 10 Mistakes to Avoid in Your Will, Fin 24, December 28, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.