Estate planning mistakes are made all the time and usually this is because the financial advisor/accountant/attorney has overlooked important issues. We have chosen to highlight five very common mistakes in this blog series.  All of these mistakes are easy to avoid, as long as you and your trusted advisors know how to recognize them!

It is important to also consult with an attorney in your State in order to review whether or not these issues pertain to you. In any case, it is recommended to ask your estate planning attorney what the most common mistakes they encounter on a regular basis are, and bring up these issues with them for discussion.

Mistake 5 – Not funding your living trust properly.

It is estimated that only about one-third of the trusts are funded properly. In many cases, people establish a living trust properly, but fail to transfer their assets into the trust at the proper times or at all. Therefore, it is important for your trusted advisor to actually look at each of the documents such as account statements, property tax bills, etc. in order to review the actual title of the property and determine when and how you should fund the trust.  While in many cases funding the trust properly requires relatively swift actions, not all living trusts should be funded immediately.

Occasionally, it is prudent to establish a Living Trust but not immediately fund it for reasons such as liability protection (doctors, lawyers, etc.) until they are beyond the tail period on their malpractice or because a retirement institution will not accept a sophisticated beneficiary designation attachment but will accept a trust as a contingent beneficiary.

Therefore, it is really important to discuss your full situation and goals with your advisor to avoid making a mistake in funding your trust.

This is only one common mistake.  Again, please make sure that you consult a competent estate planning attorney to make sure everything in your estate is in order and fits perfectly with your individual situation!

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Estate planning mistakes are made all the time and usually this is because the financial advisor/accountant/attorney has overlooked important issues. We have chosen to highlight five very common mistakes in this blog series.  All of these mistakes are easy to avoid, as long as you and your trusted advisors know how to recognize them!

It is important to also consult with an attorney in your State in order to review whether or not these issues pertain to you. In any case, it is recommended to ask your estate planning attorney what the most common mistakes they encounter on a regular basis are, and bring up these issues with them for discussion.

Mistake 4 – Having the wrong beneficiary named on retirement accounts.

It is estimated that over one-third of retirement accounts either have an incorrect beneficiary or do not even show who the beneficiary of the account is! It is critical to make sure that your advisor retains all copies of the beneficiary forms and makes sure that they are, in fact, correct and that the beneficiary is not deceased or the beneficiary is simply the estate. Remember – in the event that no beneficiary is found, the default is usually going to be the estate. This can be unfavorable because the retirement account will not have a designated beneficiary which might create significant income tax problems for the beneficiaries in the future if other estate planning tools are not in place.

This is only one of the various common mistakes.  Again, please make sure that you consult a competent estate planning attorney to make sure everything in your estate is in order and fits perfectly with your individual situation!

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Estate planning mistakes are made all the time and usually this is because the financial advisor/accountant/attorney has overlooked important issues. We have chosen to highlight five very common mistakes in this blog series.  All of these mistakes are easy to avoid, as long as you and your trusted advisors know how to recognize them!

It is important to also consult with an attorney in your State in order to review whether or not these issues pertain to you. In any case, it is recommended to ask your estate planning attorney what the most common mistakes they encounter on a regular basis are, and bring up these issues with them for discussion.

Mistake 3 – Not having your estate updated on a regular basis.

It is best to have your estate plan reviewed at least once every three years to make sure that everything is current. Very often someone has made changes in their life during a three year period of time. This can include death, divorce, new children or grandchildren and changes in desired beneficiaries.

In addition to this, the individual may have moved to a new State and their existing estate plan does not comply with the various rules of the new State. It is extremely important.  Also, new tax laws often warrant changing the estate plan.

This is only one of the various common mistakes.  Again, please make sure that you consult a competent estate planning attorney to make sure everything in your estate is in order and fits perfectly with your individual situation!

_{Copyright © MD Producer}

Estate planning mistakes are made all the time and usually this is because the financial advisor/accountant/attorney has overlooked important issues. We have chosen to highlight five very common mistakes in this blog series.  All of these mistakes are easy to avoid, as long as you and your trusted advisors know how to recognize them!

It is important to also consult with an attorney in your State in order to review whether or not these issues pertain to you. In any case, it is recommended to ask your estate planning attorney what the most common mistakes they encounter on a regular basis are, and bring up these issues with them for discussion.

Mistake 1 – Not having an estate plan.

Many people believe that as long as they hold title as joint tenants that this is all that is necessary. As we know, one of the major issues in many States is to avoid probate. This will obviously vary depending upon your estate, but in most cases, it is a lengthy process to go through probate and often it is wise to avoid it.

Holding title as joint tenants usually avoids probate – but only upon the first death! If, for example, a married couple holds title as joint tenants, and the husband passed away, then the wife would automatically inherit his half. However, in the event that they had three children, and the mother passed away, the children would usually have to go through probate in order to transfer the title of that asset over to them.

I know some advisors recommend their clients to put their children on as joint owners after the husband would pass away. However, this is also a potential problem due to step-up in basis considerations, and very often, liability or control issues!

This is only one of the various common mistakes.  Again, please make sure that you consult a competent estate planning attorney to make sure everything in your estate is in order and fits perfectly with your individual situation!

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