You Can’t Afford to Make These Four Estate Planning Mistakes

We are sometimes approached by people who are dealing with negative situations that were caused by estate planning mistakes. In this post, we will look at five of these errors that are commonly made so you can take the right steps to steer clear of them.

Intestacy

A survey that was conducted earlier this year found that just 32 percent of American adults have wills or trusts in place. When you see this number, you may assume that this is strictly due to inaction amount younger people.In fact, about 57 percent of people that are 55 years of age and older have no estate planning documentsIf you die intestate, the state would be forced to supervise during the administration process. A representative would be empowered to act as the estate administrator, and after debts are paid, the court would order the distribution of the assets.They would use the intestate succession laws of the state of California. When assets are distributed in this manner, people that you would have never forgotten could be disinherited or shortchanged.There is no reason to take any chances when qualified estate planning assistance is just a phone call away.

Embracing Myths About Trusts

One very common mistake is the refusal to consider the value of trusts because of certain misconceptions. For one, many think that trusts are only for very wealthy individuals, but this is simply not true.There are many different types of trusts, and some of them are quite useful for people of relatively ordinary means. As a layperson, there is no reason why you would be aware of the different options that are available, and this is understandable.When you discuss your situation with an attorney, you may be surprised to hear about a trust that can provide a solution that is ideal for you and your family.

Outdated Estate Plans

People that have taken action to put estate plans in place often drag their feet when updates are required. The existing estate planning documents are valid until and unless they are replaced, and this is something to take seriously.If you do not revise your plan and you pass away before you get around to it, the distribution of your assets may not be consistent with your wishes at the time of your passing.

Estate Administration Misconceptions

You may assume that the administration of a trust is complicated, and the heirs receive their inheritances right away when a simple will is utilized. In fact, a will would be admitted to probate, and a long and expensive legal process would be initiated.On the other hand, if you use a living trust, the trustee that you name in the trust declaration would be able to distribute assets to the beneficiaries outside of probate. Probate avoidance is key, and there are other reasons why living trust administration is more streamlined and efficient.

Join us for a FREE Seminar on Strategic Estate Planning on Saturday, October 5th

Attorney Collins will lead an insightful session on safeguarding your family’s wealth through effective estate planning. This is your opportunity to understand the critical role of fiduciaries and ensure your legacy is protected. Register Here for the October 5th Seminar Don’t miss this chance to secure your future. We look forward to having you with us!