TOP 10 MOST COMMON MISTAKES IN ESTATE PLANS
- Creating a sense of “entitlement” among your beneficiaries – saying too much or too little – saying anything at all; forgetting that this is YOUR life, and death to come, not theirs; caring too much what others think.
- Naming the “wrong” executor, agent under a power of attorney and/or trustee, or naming too many to start with.
- Using a “do-it-yourself” Will or Trust program. (They rarely work the way you want them to work for your particular situation, and, are often executed incorrectly, making them worthless.)
- Trying to rule from the grave – trying to control too much what happens after you are gone; putting in too many restrictions so that it is not flexible enough for real life.
- If you use a Revocable Trust, not “funding” the trust completely.
- Not keeping current about/not knowing who are the “designated beneficiaries” on assets that you may want to – and for tax reasons should – pass on by beneficiary designation. (I.e., IRAs, pensions, etc.)
- Waiting too long to make sure your plan is in order, or up to date; older people should be particularly mindful about getting their affairs in order sooner than later in case an illness causes them to lose mental capacity – then, it is too late.
- Relying on your neighbor’s advice about how things work in the world of death and disability, as opposed to talking to (and paying for) a professional.
- Trying to get too tricky, with any part of this. Keeping it simple is always best.
- Not caring. Leaving a mess for your loved ones to sort out at a time when that is the last thing they want to be doing.