If you are a business owner, it is important to understand what you can and cannot bequeath in your will to loved ones or business partners. There are rules and regulations surrounding which of your possessions can be transferred through your will. Keep reading to find out what business owners cannot bequeath through a will.
Several ownership interests cannot be transferred in your will, including:
- Property held in a Trust – Ownership rights for a Trust cannot be transferred to another person via your will. The beneficiary of the Trust will receive ownership for assets.
- Property held in Joint Tenancy – Joint Tenancy is an equal ownership right, whereby you and your partner own an equal share in the property. Your half cannot be transferred to another person, and instead will be automatically transferred in its entirety to the other joint owner.
- Superannuation accounts – you can nominate a beneficiary within your superannuation account. Your balance is distributed to this person and cannot be included in your will.
- Beneficiary accounts – if you have a life insurance policy, you must nominate a beneficiary. The money will be transferred per your policy and cannot be transferred by requests in a will.
- Digital property rights – the law does not allow you to leave passwords in wills for the transfer of digital accounts to a living person. It is best to ensure that all parties have administrator rights, so information or accounts are not lost.
It would be best if you kept this in mind when drafting up a legally enforceable will, as they can create complications in the future. Consult a professional to help you plan for those you leave behind. Contact The Farm Protectors today for peace of mind to your business and your family.