Why List Down Assets Individually on the Platform?
Listing each assets individually is preferred as it adds clarity, makes future updates easier, and helps prevent unintentional errors. Assets added under the Allocate Assets tab will be generated into a downloadable Asset List to serve as a reference for your executor(s) to fill up the Schedule of Assets required for the Grant of Probate application.
Listing assets individually, rather than in broad categories, is generally regarded as best practice in estate planning to minimise ambiguity. Broad categories can have serious downsides as they may still be ambiguous, overlap with other categories, or be more prone to mistakes.
If you wish for the added assets to follow the "Residual Assets" allocation, you can select "No specific allocation" within the asset instead of specifically allocating each one. Added assets will only be printed in the Will if you have chosen "I give this assets to" some beneficiaries or included "Additional Instructions" for it. The market values keyed in are not reflected on the Will as they do not affect the Will content.
The rationale for allocating assets individually (instead of via broad category) is similar to why an insurance nomination is filled out for each individual policy rather than using one nomination form to cover all policies from the same insurer.
Why Listing Assets Individually is Best Practice
1. Clarity and Reducing Ambiguity
Listing assets individually clarifies exactly what each assets are, avoiding potential confusion around broad categories like "investments", "insurance", or "property" etc. This reduces the chance of misinterpretations or disputes during probate, especially as categories can be broad, ambiguous, overlapping, and often open to various interpretations.
2. Simplifies Future Updates
When assets are listed individually, making updates to your Will becomes simpler, reducing the risk of accidental omissions or errors. This is especially useful when you have new assets that don’t fit neatly into any one broad categories, or worse if it fits across multiple broad categories which can cause confusion.
3. Better Support for Executors During Probate
When you list each asset separately, the platform can generate them into a detailed downloadable Asset List. This list is essential for executors during probate, making it easier for them to complete the “Schedule of Assets” document required in the Grant of Probate application. This saves time and costs.
4. Snapshot Feature for Reviewing Decisions
With individual asset listings, the platform’s Snapshot feature shows exactly which assets go to each beneficiary. This helps you review your choices and make informed adjustments, ensuring your plans align with your intentions.
Example: Avoiding Ambiguity with Broad Categories
Imagine you want to leave your “investment portfolio” to your daughter but intend for a specific real estate investment to go to a charity. A broad term like “investment portfolio” might mistakenly include that real estate, leading to unintended results. Listing each asset separately helps prevent such misunderstandings.
Why General Categories Can Lead to Issues
1. Risk of Misinterpretation
Broad terms like “investment”, "insurance", or “property” can be ambiguous. If your Will states to give “all my investments to Person A”, do you meant to include your real estate properties that were purchased as investment? What about your retirement policies, employment stock options, or collectibles like art that have value but aren't traditional investments? What we commonly mistaken as clear distinct categories might also overlap. Listing assets individually ensures clarity, avoiding confusion and potential misallocation.
2. Overlooked Exceptions
If you intend to leave “all investments” to one beneficiary but want a specific investment plan to go to another, you’ll need careful wording to exclude that plan when referring to “all investments”. It’s easy to miss out in clearly defining such exception. This approach is also especially prone to error when updating your Will.
3. Still Having to Do Double Work
Even if you manage to clearly define your categories, it is still the recommended practice to also list down those assets within that category so it is obvious to anyone who reads it. You will still need to prepare an Asset List with each individual asset details for your executor to fill the Schedule of Assets document required during probate. Wouldn't this be more tedious than just listing down the assets individually in the first place?
Note: Estate planners may chose not to assist in the Will if they are unable to assist effectively without a detailed breakdown of financial information. Estate planning extends beyond just writing the Will, and complete information ensures accuracy and alignment with your wishes.