Estate planning can be confusing and overwhelming, but with the right help and plenty of due diligence, you’ll be a lot better off. No matter what your worth, it’s important to have a basic estate plan in place to ensure that your family and financial goals are met after you pass away.
Preserving Your Estate for Your Family
In a recent article by AARP, the editors go over these 4 “costly estate-planning blunders”:
- Forgoing an expert’s review. We all like to save money and using templates for basic wills from online sources or in a bookstore is a great way to do that. But when it comes to drafting your own estate-planning documents, be sure to invest in a review of the final documents by an expert.
- Failing to tie your business to your estate plan. If you own a business, be sure to include it in your estate plan or your kids may have to sell it or pay out of picket for costly estate taxes.
- Leaving lump sums. If you plan to leave money for your family members, be sure to leave it in a trust, rather than in cash. A trust is the best way to protect people from themselves when it comes to large sums of money. With a trust, you transfer property to a trustee, who is bound by a trust agreement. The agreement stipulates how you want the property distributed and offers an added layer of protection.
- Neglecting to update your estate plan. Each time the law or your family changes, you must revisit your estate plan. Never assume all of your goals are accounted for.
For more information, check out the full article here.