It's easy to make mistakes when dealing with legal and financial matters and estate planning can encompass both of those subjects. However, some mistakes happen so often that estate lawyers warn clients about them. For a better idea of what you don't want to do when planning an estate, read on.
Don't Encourage Problems with Beneficiaries
Nearly every family must accept that some of the members are never going to get along. Though there may not be much you can do about that, you should keep those that are difficult to deal with in mind when naming those you want to make major decisions after your death. Base your decisions on how well your loved ones get along, and which are most responsible, trustworthy, and reliable. You must name several people to take on major roles so consider your choices carefully when you name a personal representative, trustee, a power of attorney, healthcare proxy, and more. Keep these tips in mind:
Don't Leave Out Your Pet Property
Pets are considered property (in most cases) so consider using a pet trust. This estate vehicle names a person to care for your pet and provides funds to do so. Be specific about what you expect done with the funds. For example, if you expect your pet to have allergy shots every three months, specify that in the trust instruction.
Don't Expect That Adding an Authorized Signer is Enough
Many caregivers and loved ones step in when help is required to pay bills and handle purchases. That leads some to add an adult child to a checking account as an authorized signer. This move, though, provides no power to that person after death. Rather, add a payable-on-death designation to bank accounts so that the funds go automatically to the named beneficiaries after death.
Not Funding Trusts
A trust is an excellent way to avoid probate and provide for your loved ones. However, the trust must be funded after its creation. Don't neglect to make the financial moves needed to name the trust as the beneficiary of your investment accounts, bank accounts, and other assets.
Speak to an estate planning service and avoid not only the above mistakes but many more.
Share1 June 2022
Dealing with money is a fact of life, and although it's something most of us deal with every single day, it can be complicated and confusing. In particular, it can be hard to figure out how much to save, when to invest, when to borrow, and how to maximize your earnings. My goal with these posts is to demystify common confusions about money and finance. If you want to take charge of your financial situation, I invite you to explore this blog. I am going to write about everything from spending to saving, and we're going to explore why both of these elements are important. Enjoy!
