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.
Carlynton-Montour | Spring 2017 | icmags. com 33