Understandably, it can prove difficult to inventory every last asset you have allocated throughout your lifetime. With that, it happens more often than not that a testator fails to include instructions for one or more of their assets in their Last Will and Testament document. Follow along to find out the types of assets that are most prone to being forgotten, and how a proficient Broward County wills lawyer at The Probate Lawyers can help you avoid the consequences of doing so.
What kinds of assets are commonly left out of estate plans?
Sometimes, testators assume that once they finalize their Last Will and Testament documents, their work is complete. However, they may forget their lawyer’s previous advice, citing a common rule of thumb: to revise their estate planning documents whenever they experience a major life event. Therefore, they may have failed to include newly purchased property.
Secondly, testators may overlook assets that they typically do not monitor frequently. Namely, their employer-sponsored life insurance and retirement plans. This may be okay to not mention in an estate plan, though, as these assets need not go through the Florida probate process. Although this is so long as they have satisfied the required beneficiary designation here.
Lastly, below is a list of assets that are less obvious and thereby easily left out of distribution and inheritance arrangements:
- Digital assets (i.e., cryptocurrencies, domain names, etc).
- Sentimental personal property (i.e., jewelry, artwork, etc).
- Family pets (i.e., guardianship, funds for their care, etc).
- Minor financial items (i.e., uncashed checks, old bank accounts, etc).
- Business interests (i.e., small business shares, intellectual property, etc).
- Membership programs (i.e., vacation timeshares, club memberships, etc).
What are some of the consequences of omitting assets?
Once a Florida probate court identifies assets that were, intentionally or not, omitted from a testator’s Last Will and Testament document, they will apply the state’s intestacy laws. Here, they will follow a hierarchy for distribution, which typically starts with a surviving spouse, children, and parents. Of course, this may not align with your will’s other instructions.
Another glaring consequence is that your omitted assets may be made vulnerable to creditors. This is because the Florida probate process entails notifying creditors and resolving your outstanding debts. So, your creditors may take this as an opportunity to make claims against these assets. This may significantly reduce the total that is distributed to your beneficiaries.
Lastly, omitted assets may create unnecessary quarrels amongst your loved ones. That is, one family member may have a distinct memory of you verbally promising that they will inherit a specific asset. But if this was not translated into your will document, and it goes to another family member first due to intestate succession, they may formally contest your will.
If you are ready to improve your existing estate plan, please reach out to a talented Broward County estate lawyer. Even if you did not use The Probate Lawyers for your initial estate planning, we will be happy to step in for this follow-up.
