Having a valid will addresses many issues concerning an individual’s estate. Aside from naming an executor, it can also help determine beneficiaries and provide details for dividing the estate. However, a will might only cover specific property types. Some assets could follow survivorship rights, depending on the circumstances.
Knowing these limitations before writing a will helps individuals plan properly. Failing to consider these restrictions might affect the will’s enforceability. The following property types are usually outside a will’s jurisdiction:
- Joint tenancy – These are assets with more than one person as the owner, such as houses, cars and joint bank accounts. Such assets usually follows a different set of rules when one of the owners dies. Instead of following a will, ownership goes by survivorship guidelines, meaning the co-owner receives the deceased’s half of the asset.
- Life insurance – This type of insurance lists a beneficiary within the policy. If the policy owner passes on, the benefits will automatically go to the beneficiary.
- Savings bonds – Specific savings bonds require the owner to name a person for the bond. This property type could be outside a will’s jurisdiction, making the named beneficiary the recipient after the owner’s death.
However, these properties could have unique qualities that are potentially beneficial in the future. A professional specializing in estate planning could determine how to manage these property types.
Use estate planning tools efficiently
Wills could help resolve matters and decisions left in the air after an individual’s death. However, it might not solve all problems concerning the deceased’s estate. A combination of different estate planning tools might be needed to solidify some decisions and directions regarding the deceased’s assets. These preparations could settle property distribution concerns and avoid disputes within the deceased’s surviving family.