Posted by Rie Umano
It is not always fun task, but estate planning is necessary to transfer your assets to your heirs effectively. You might be able to avoid high federal taxes and estate taxes if you plan properly. It is always better to plan earlier and constantly check your estate planning as things change. However, even if you planned already, there are some mistakes you might make possibly. Here are some examples.
1. Failing to make an estate plan – when it comes to basis estate planning, it seems like most people simply avoid doing it. They just do not want to deal with death, complicated family situation, misperceived expensive costs and many other reasons. However, no matter what your situations are, you should start creating your estate plan. Otherwise, you will end up paying more money and hurting your family after you die. Make sure you keep updating your estate plan, so that it will work that way you intended.
2. Forgetting about little things – many people tend to forget their personal effects to the plan. Your jewelry, art work and collectibles can affect your estate planning as well.
3. Choosing wrong fiduciaries – many people tend to chose wrong people or institution to serve as their Personal Representatives or Attorneys. Choosing the right fiduciaries is pretty significant when you create your estate planning. Your plan would not work well if your fiduciaries cannot work efficiently.
Sources:
http://www.allbusiness.com/personal-finance/retirement-estate-planning/4005-1.html
http://wills.about.com/od/estateplanning101/tp/fiveplanningmistakes.htm
http://www.bankrate.com/brm/news/Financial_Literacy/Nov07_estate_plan_mistakes_a1.asp?caret=72a
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