Does A Will Oversee the Distribution of All of Your Assets?

Are you thinking about using a will? It is one of the most important estate planning tools and yet is also one that is frequently overlooked by people who could benefit from a will and other estate planning strategies. One of the biggest myths about estate planning is that a will oversees the distribution of each one of your individual assets.

A will allows you to establish how your belongings should be distributed. Whether it’s family heirlooms, a vehicle or something else, wills do have limitations, however. The will has control over the assets that are in the person’s individual name alone. If an owner has joint accounts or accounts listed with beneficiaries on them, the will has no controlling power over these accounts. This is a lesson that many people have had to learn the hard way when their loved ones expected to receive benefits outlined for them in the will but instead, these materials were passed on according to the beneficiary designation forms filed directly with appropriate companies.

Many different types of companies and accounts do use beneficiary designations that override what is established in the original will. These include retirement accounts, certain types of brokerage accounts and life insurance policies. A regular review of the beneficiary designations on these policies is helpful for figuring out whether they are outdated or include a former spouse. Since the only information that those companies have to pass on your assets are in the form of beneficiary designations, you must protect yourself by regular review of these materials.