Estate planning is a crucial component of a wealth protection plan in Minnesota. State laws will dictate the distribution of property in probate court if a will does not exist. Probate administration can be very expensive, and it offers no guarantees that the deceased’s wishes will be honored. When creating an estate plan, it is important to avoid a few common mistakes that could prevent the plan from being carried out as intended.
One of the most common mistakes that people make when creating an estate plan is a lack of revision. Drafting an estate plan is a great start, but it must be periodically checked and updated. As time passes, family situations and tax laws will change, and assets will grow. These shifting circumstances should be reflected in an estate plan so that property is equitably divided when the will is carried out.
One of the most important reasons for creating an estate plan is to ensure that children will receive inheritances in accordance with the deceased’s wishes. As children grow, their priorities and personalities change, and parents may wish to hold off on fully funding trusts until these changes can be considered.
Perhaps the biggest mistake that people make when creating an estate plan is going it alone. It may save money initially, but the errors that could be made due to a lack of experience might be drastic. Hiring experienced help is the best way to make a flawless estate plan.
Writing wills and drafting estate plans involves a lot of work and careful planning. An attorney may be able to offer advice on taxes and inheritance laws so that a client can create an estate plan that leaves the maximum inheritances to their loved ones.
Source: CNBC, “Trust bust: Steer clear of the 8 biggest estate-planning mistakes“, Barry Glassman, January 03, 2015
