How to Gift Your Assets in a Will

Your assets are your property and include everything you own, from the contents of your bank accounts to your home, car, and jewelry. If you want a say in where your assets will go once you're gone, you can express your wishes in a last will and testament — an essential part of your estate plan.

In your will, you must write statements or provisions that detail the assets you wish to gift along with the specific family members, loved ones, or organizations you want to leave them to. These directions are also called bequests, and the people or organizations you choose to receive your property upon your death are called beneficiaries.

Here is a guide to bequeathing different types of assets.

Take Inventory of Your Assets

When you are ready to write your will, take inventory of all of the assets you would like to pass on, which means making a list of everything you own.

Alongside this inventory, create a complete list of the people or organizations you want to receive your property. Matching up these lists will help make sure you don't forget anything or anyone.

Make Bequests

Now you are ready to write your will. Gather the identifying information of your beneficiaries to ensure your assets go to the right places.

For people, include their name, birthdate, and your relationship to them. For organizations, include name, address, and Employer Identification Number (EIN).

For more information on the language to use in your will provisions, see this sample basic will. For tips regarding the different types of gifts you may wish to make in your will, read on.

How to Gift Cash

When gifting cash in a will, take stock of your bank accounts and any place where you might store physical cash — your wallet, a safe, under your mattress.

If you plan to sell personal property and gift the cash earned from sales, don't forget to include that in your will as well.

How to Gift Personal Items

You may want to gift personal property in your will. Examples of personal property include:

• Vehicles
• Furniture
• Appliances
• Jewelry
• Electronic devices
• Books
• Artwork
• Collections

If something is important enough for you to want to leave it to someone, you should include it. Write in clear terms what the item is and to whom you would like to leave it.

How to Gift Financial Accounts

If you hold a financial account on your own, you can leave it to a beneficiary in your will just as if it were cash. If another name is on the account, it will pass to that person upon your death.

All types of bank accounts, including checking, savings, money market, and certificates of deposit, can be “pay-on-death" (POD) accounts. This means that while you are alive, you can name a beneficiary, and that person will receive the right to the account upon your death.

Additionally, stocks, bonds, securities, and even some other types of assets, including real estate, might be “transfer-on-death" (TOD) property. These work in a similar way. That is, you choose the beneficiary while you are alive, and upon your death, the right to the property transfers to them.

You do not have to include these types of assets in your will. Passing them to beneficiaries this way also keeps the assets out of the probate process, which is the court-supervised distribution of a deceased person's property.

How to Gift Real Estate

If you jointly own real estate or "real property" (including your family home) with someone, ownership will pass directly to the joint owner upon your death. You do not have to name a beneficiary in your will for any property — real or personal — that would pass directly to someone else when you die.

Depending on your state and type of ownership, you may own real property with the right of survivorship or by joint tenancy or tenancy by the entirety. These are legal terms that give someone else a right to the property upon your death. In these situations, you do not have to include these assets in your will.

If ownership of the property will not pass automatically to anyone, you should include a statement in your will leaving that property to a beneficiary. There are other ways to give away property in your will.

How to Gift to a Charity

You can provide for your favorite charity in your will by leaving cash the same way as you would for an individual. You may also gift the organization any of your other assets, including:

• Stocks, bonds, securities
• Real estate
• Personal property

You may also leave a percentage of your total estate — roughly, the value of all your assets minus any debt — to a charity in your will.

Assets Not Given in a Will

In addition to POD accounts and TOD property discussed above, there are several other types of assets you do not have to include in your will:

• Living trust assets
• Life insurance policies
• Annuities
• Retirement accounts, including IRAs and 401(k)s

You can designate a beneficiary for these types of assets while you are alive. As with other types of POD accounts and TOD property discussed above, the right to these assets transfers automatically to your designated beneficiary upon your death.

Have an Attorney Review Your Will

Estate planning is crucial to providing you peace of mind. You can make your own will using online estate planning forms. A lawyer licensed in your state can help ensure that your will is properly executed and complies with state law.

An estate planning attorney can also advise you on matters such as potential estate taxes and whether you should consider additional documents, such as a financial power of attorney or a living will or similar health care directive.