How to avoid estate planning mistakes
Creating an estate plan may seem like a morbid process, because planning for your death is not exactly one’s idea of fun. Nevertheless, no one lives forever, and it is always best to prepare for the unexpected. Even those people who have the foresight and initiative to create an estate plan, most may not think about what must be done after documents are signed. When estate plans go neglected, strange things can happen. Because of this, we offer this post to help people avoid hazards that come with neglected or poorly conceived estate plans.
Not funding trusts – It is one thing to create a trust, but it is a common mistake to forget about funding it. After all, a trust is not effective without assets. So it is helpful to make sure that assets you want included in the trust are re-titled so that they are properly made part of the trust.
Thinking your will is enough – A will is only one element of a proper estate plan. It essentially carries instructions for how you want assets distributed, but it may not eliminate the probate process (i.e. the legal process of transferring ownership of assets. If you want to transfer assets without having to go through probate, a trust in addition to your will may be needed.
Failing to update your will or trust – There are three constants in life: death, taxes and changes. Creating an estate plan can deal with the first two, but failing to update the components of your estate plan could lead to disaster; especially when beneficiaries or executors change.
Nevertheless, some of the issues can be avoided by consulting with an experienced estate planning attorney,