When individuals and couples begin to plan their estate for once they pass, there are several mistakes that can be made along the way. Plenty of attorneys see mistakes made constantly when it comes to estate planning, which is why it can be helpful to hire a financial advisor from Safe Retirement Solutions to assist you in the estate planning process. There is a lot to cover and it can become confusing and overwhelming at times.
Barbara W. Reynolds, an attorney from Connecticut, says that the following are the most common mistakes she has found when dealing with individuals planning their estate:
- Power of Attorney- Some people are under the assumption that powers of attorney are the same thing and will last indefinitely. This is not the case at all. Certain documents need to be updated every couple of years and certain levels of power of attorney will cover different things.
- Health Care Directive- Individuals may find signing a Health Care Directive unnecessary, but that is not the case at all. A misconception made by a lot of people is that their loved ones will know automatically what their wishes are during medical situations. This is not always the case, which is why it is important to have a Living Will established as well as an individual named who will carry out your wishes. Both are covered under a Health Care Directive.
- Will- Many individuals think that a Will isn’t needed until they hit a certain age. Unfortunately, there is never a set date when you will pass away, making a will necessary sooner than you may want to realize.
- Assets- You may believe you don’t have any assets, yet you have children under the age of 18. It is important for you to name a guardian for your children should something happen to you, as well as create a trust for your children.
- Updates- Often times people create a Will and never return to it. It is important to revisit your documents to make changes that you feel are necessary.
- Retirement Benefits- When you name a trust for your retirement benefits, you are risking the individual receiving the assets in one year, which makes the money taxable.
- Shelter your Assets- Estate taxes could reach your assets if you don’t shelter them properly with simple paperwork.
- Leaving your Assets- If you leave your assets to those you receive government benefits like Medicaid, their inheritance is left vulnerable to the State. Leaving the inheritance in a trust could make matters easier for the individuals.
- Succession- Most business owners fail to consider the transition period of your business should something happen to them. Planning for such an event will help the transition period go simply and will protect your business.
- Under-insuring- Consider your dependents when planning your life insurance. You don’t want to leave your family and loved ones in a bad position because you failed to have enough life insurance.
When it comes to avoiding mistakes with estate planning, call the advisors at Safe Retirement Solutions today at 410.266.1120. You can also visit our contact page.
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