It is natural to think you can use your last will and testament to pass anything you own to family members or other heirs after you die. However, there are some kinds of property and financial accounts that should not go in a will.
Typically, assets that do not belong in a will already have a mechanism in place to convey them to beneficiaries. This makes using probate unnecessary since these assets can transfer their ownership to someone else without the need of a will or probate court.
Property with joint ownership
It is possible to set up a joint tenancy arrangement where you share ownership of property, money or a vehicle with another person. Following your death, the other owner is almost certain to receive full ownership of the asset without any obstacles.
Property with TOD provisions
Particular assets already have a provision to pay or transfer the asset to an assigned beneficiary. This is common with retirement accounts, pensions, investment accounts and life insurance policies.
It is also possible to create a transfer-on-death deed. This permits you to transfer property such as your home to another person upon your death. As another benefit, you may revoke your TOD deed if you change your mind about who should inherit the property.
Property in a trust
When you create a trust, you have a method in place to distribute money or property per the terms of the trust. So there is no reason to use your will to address trust assets. If you wish to change who receives your trust property, it is better to alter the trust itself, provided you have created a revocable trust that you maintain control over.
There are different ways for estate planning to realize your goals for your family. Make sure that your various methods of passing your property and other wealth harmonize so nothing conflicts with each other.
