Seven Common Mistakes of Estate Planning

Even though planning your estate isn’t the enjoyable job it’s necessary so that you can efficiently and successfully transfer all of your assets to those you leave behind. With a little of careful planning, your heirs can prevent having to pay estate taxes and federal taxes on your assets. Additionally, a well planned estate avoids confusion for your loved ones.

 

Still, with all the advantages of estate planning, a lot of persons make a great many mistakes in the process. The most general mistake when it comes to estate planning is not getting around to doing it at all. Take care that you take the time to plan at least the financial portion of your estate so that you leave your loved ones behind with some amount of security. The next seven mistakes often put families into great difficulty after a loved one’s passing.

 

1. Don’t fall into the trap of thinking that estate planning is only for the rich. This is wholly false as planning your estate is necessary for anyone who has any amount of assets to leave behind. A lot of people don’t understand that their estate is as large as it really is, specially when they fail to take into account the assets from their home.

 

2. Bear in mind to update your will and to review it at least once every two years. Factors that can change information about your beneficiaries include deaths, divorce, birth, and adoption. As your family structure changes so does the change in your assets and who you want to leave them to.

 

3. Don’t think that taxes paid on your assets are set in stone. Talk to your financial planner about ways that your beneficiaries can prevent paying taxes on your assets. There are some strategies for tax planning so that you can minimize taxes or avoid them altogether.

 

4. All of your financial papers should be in order so that it’s simple for someone to find them. Take care that one of your loved ones has information on where to find the papers necessary for planning after your death.

 

5. Don’t leave everything to your partner. When you leave all of your assets to your wife/husband you are in reality sacrificing their portion of the benefit. You’ll get an estate tax credit but will forfeit part of this if your wife/husband is your only beneficiary.

 

6. Make certain that your children are well planned for. A lot of persons take a lot of time deciding what to do with their assets and forget that they need to appoint guardianship for their children. There are lots of details to take into consideration when it comes to guardianship.

 

7. If you don’t have a financial advisor, find one. Financial Planners and Advisors are trained intimately in these matters and can provide asset protection well above whatever fees they may charge. If you need help selecting the right financial advisor, find the Financial Advisor Report.

 

The above mistakes are general when individuals are planning their estate. Take the time to plan for your death even though you suppose that you have years before it becomes an issue. The key to successful estate planning is being prepared.

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