INDUSTRY INSIGHT
ESTATE PLANNING
SPONSORED CONTENT
TEN COMMON
Estate Planning Mistakes
Here is list of 10 common estate planning errors that people often make . An eleventh mistake , and perhaps the worst mistake of all , is to have no estate plan at all .
1 . IMPROPER USE OF JOINTLY HELD PROPERTY . Owning everything jointly makes the provisions of one ’ s Last Will and Testament null and void . Namely , property held jointly with the right of survivorship is left outright to the survivor . Frequently , an inequitable amount of property goes to a joint tenant because he or she receives the property directly even though the Decedent ’ s Will may have called for a different division of the assets .
2 . IMPROPERLY ARRANGED OR TITLED LIFE INSURANCE . If the primary beneficiary of your life insurance policy is deceased , and you never took the steps necessary to name a secondary or contingent beneficiary , your family could be in for a big problem . If your children are minors , and you haven ’ t designated a trust to hold the life insurance proceeds until they reach a certain age , they would have full access and entitlement to these monies at the tender age of 18 .
3 . LACK OF LIQUIDITY . Not having enough cash readily available to cover funeral expenses , death and inheritance taxes and other final expenses is often a major concern for many families .
4 . CHOOSING THE WRONG EXECUTOR . Often , the person designated to serve as the Executor under a Decedent ’ s Will hasn ’ t got the time , skill or knowledge to carry out the often long and drawn-out process of probate estate administration .
5 . WILL MISTAKES OR ERRORS . Too many Wills do not get updated . People tend to draft wills when they first get married or when they still have minor children . Their Wills may then be neglected for years after that . Remember , an incorrect Will can pass property to an incorrect heir .
6 . LEAVING EVERYTHING TO YOUR SPOUSE . Depending on the size of your estate , there could be serious tax consequences involved in passing all of your property outright to your spouse . Make sure you stay current with any changes in federal or state death or inheritance tax laws .
7 . IMPROPER DISPOSITION OF ASSETS . This is when your assets get passed along to the wrong person . A 20-year-old , for instance might receive a larger amount of money than he or she is capable of handling .
8 . FAILURE TO STABILIZE AND MAXIMIZE . If you own a family business that is likely to survive and pass on to your heirs after your death , it ’ s very important that you know , and record , the value of your business interest , and have an agreement in place that makes provisions for the business if you die .
9 . LACK OF ADEQUATE RECORDS . Where are your assets located ? Remember , your Executor will need to have access to your most recent tax returns , the locations of all your bank accounts and all of your other personal and financial information .
10 . NOT HAVING A MASTER PLAN . You can learn everything you can about estate planning , but if you don ’ t have a well-thought-out master
plan , you ’ ll still be at square one . Be sure to take the time once a year to quantify in dollar terms your financial needs , goals and objectives .
Having a clear and intelligent estate plan can bring you peace of mind and assure that your heirs will get the maximum benefit from what you have left behind . Call us today to schedule your free legal consultation or visit us online at www . americanwillsandestates . com .
Lloyd A . Welling , Esq . Attorney Welling received his law degree from Duquesne University School of Law in 1992 . He started the law firm of American Wills & Estates in 1997 and has practiced exclusively in the areas of Probate Estate Administration , Estate Planning and Real Estate law since that time .
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