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Avoid these 3 common estate planning mistakes

On Behalf of | Sep 3, 2021 | Estate Planning |

Your estate plan enables your family members and others named in the plan to know what you want to do with your assets when you pass away. When you set up a comprehensive estate plan, it also relays your wishes for your care if you become incapacitated. 

Many people don’t realize that there are some specific mistakes they can make with their estate plan. These can have a significant impact on what happens when it’s time for your estate plan to be utilized. 

Mistake #1: Double listing assets

Each asset you own should only be listed in your estate plan once. One issue that some people come across is that accounts held in financial institutions usually have a payable on death designation. Those assets shouldn’t be included in the estate plan.

Mistake #2: Trying to rush

Never try to rush through the estate plan. Not only can you miss important points, but you might also find that you can’t use certain components. For example, some financial institutions might nitpick a power of attorney designation so it’s best to ensure that you have this set up in a way the institution will accept. 

Mistake #3: Not considering taxes

Estate taxes can eat away at a high-value estate, so you should consider the tax implications of the estate plan. One option that some people utilize is giving away assets before they pass. There are limits to how much you can give away before the gifts become subject to taxation.

Anyone who’s creating an estate plan should ensure that they think carefully about the goals they have for their future and their family’s future. Opting to work with someone who’s familiar with estate planning can help to ensure that you get everything set up in a way that enables your wishes to be followed. 

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