The main reason that individuals execute a last will and testament is to state who receives their assets and belongings upon their death.
If you do not have a last will and testament, state law will dictate who receives any assets in your estate. Your wishes may be the same as state law, or your wishes could be very different.
There are a variety of ways to plan the disposition of your assets. Each person’s situation is unique, so it is often worthwhile to speak to an attorney about the best way to transfer your assets to your intended beneficiaries upon your death.
Estate Beneficiaries
Beneficiaries of Financial Assets - In your last will and testament, you designate the individual(s) or organization(s) to receive all your probate assets (excluding any assets which are specifically given to a certain person, as discussed below). You also provide a plan for what happens if a beneficiary predeceases you. Does his or her share go to his or her children? Does it go to the surviving beneficiaries? Does it go to someone else or a charity?- Beneficiaries of Personal Property - While money is easy to divide, it is unfortunately too common for there to be fights over how to divide a deceased person’s “stuff” (i.e., furniture, furnishings, clothing, accessories, household equipment, appliances, and personal belongings). Many people overlook how important it is to give family members and friends direction on what happens to their “stuff” upon their death. Planning for this can help avoid arguments, hurt feelings, and promote family harmony. In your will, you can designate how the personal property is divided, and who will be the person(s) in charge of deciding how the property is divided. You can also designate the charity(ies) you want to receive items that are to be donated such as old clothes and other unwanted items.
Specific Bequests
- Specific Bequests of Assets - You can give (a) person(s) or organizations(s) specific gifts of money, stock, real estate, or other assets.
- For example, a person may leave specific real estate to a family member who would likely continue to live there after his or her death. Alternatively, a person may want to make a charitable bequest of a certain amount to a church or favorite charity. (NOTE: However, there are other options for making specific gifts, which will keep the gift private, and with respect to a gift to charity, may have some tax advantages.)
- Specific Bequests of Family Heirlooms - You can designate (a) certain individual(s) as the beneficiary of special heirlooms, family antiques, jewelry, and other items with sentimental value. This can give you the peace of mind that those items will go to someone who will appreciate and value them as you do. Often, a last will and testament will contain a provision that you can make specific gifts of personal property even after the will is executed by making a list of items, without having to re-do the entire will.
- For example, a grandparent can earmark a watch or piece of jewelry for a certain grandchild.
Taking Care of Your Pets
In your last will and testament, you can designate who will take care of your pet(s). You can also give some money to the person(s) who accepts your pets. If you want to do something more formal, Ohio law also allows for the creation of a pet trust, so that money can be held in a trust to pay for the pet’s support, veterinary care, and even burial expenses.
