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Five Common Estate Planning Mistakes to Avoid
From time to time, it's good to review why having a complete, up-to-date estate plan is so important. In addition to confirming our own actions, it can provide us with valuable information to pass along to friends and family who, for whatever reasons, have yet to act. So, here are five common estate planning mistakes to avoid.
- Not having a plan. Every state has laws for distributing the property of someone who dies without an estate plan-but not very many people would be pleased with the results. State laws vary, but generally they leave a percentage of the deceased's assets to family members. (Non-family members, like an unmarried partner, will not receive any assets.) It is common for the surviving spouse and children to each receive a share, which often means the surviving spouse will not have enough money to live on. If the children are minors, the court will control their inheritances until they reach legal age (usually 18), at which time they will receive the full amount. (Most parents prefer their children inherit later, when they are more mature.) (read more)
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How to Make a Family Meeting a Successful
Part of the Estate Planning Process
You've made the hard decisions, your documents are signed, and your trust is funded. Congratulations, you've finished your estate planning. But have you, really? Have you explained your planning to your family? Will they understand how your plan will work and what they may need to do if you become ill or when you die? Will they wonder why you made certain decisions?
The Key Takeaways
- Having a well-run family meeting in which your plans are explained will help prevent misunderstandings and confusion in the future; this is an important benefit for executing a comprehensive plan in the first place.
- Ask your estate planning attorney and financial advisor to participate. They will be able to explain how your plan works and why key decisions were made. They will be able to answer family members' questions on the spot. Also, it helps to introduce your advisory team to family members now so they will be more comfortable working together in your absence.
- Open discussion is important, but having an agenda will help keep the meeting on track.
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 Is It Time to Take Action?
Contact us and find out how easy it is to set your estate plan up. You'll sleep better at night knowing things are taken care of the way you want.
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