Research has revealed that many people are misinformed when it comes to estate planning. Most of them have been relying on the erroneous information. Relying on such advice or information can end up costing you a lot of money. Outline here below are some of the common mistakes that you need to avoid in estate planning.
Having an estate plan is very important. However, most people have been procrastinating doing anything about this plan. To be on the safe side, this is something that should not happen to you.
Failure to have a will
A basic will is one of the essential things that you should always have. This will is helpful in administering the individuals who will be administering your estate when you are not there. It will also specify whom the estate or property will be distributed to once you die.
Not considering a trust
Some people believe that trust is only meant for the wealthy people. Some of them also don’t understand how time-consuming and expensive probate can be. Having a trust will save your family’s money and time upon your death or when you become disabled.
Failure to find a trust
Trust is right for many people. Anyone having it should ensure that is properly signed. Your assets such as bonds, stocks, real estate or home should be re-titled into that name of your trust to avoid probate.
Putting the names of your children on assets
This is one of the common mistakes that are committed by many people. Adding the names of your children to real estate, bank accounts, and other assets should be avoided at all costs. Doing so will end up creating problems when you die.
Doing it yourself
Everyone loves saving money. Both your children and estates are extremely important to you. Including them whenever you are planning your estates is strongly recommended.
Not having an attorney
Planning for your death is one of the important parts of estate planning. Hiring a reputable attorney can help you in making decisions related to health care power and finances. This is extremely important.
Incorrect naming of the beneficiaries
Any asset that has a beneficiary like life insurance should be taken into account in your estate plan. Incorrect naming of the secondary and primary beneficiaries can end up undermining your trust or drafted will.
Failure to review your plan periodically
Trusts or wills that were drafted many years ago should be reviewed. Some of them might be inappropriate currently. Hiring an elder lawyer can help you in reviewing such wills.