10 Mistakes You May Be Making. . .continued

7.      Not reviewing plans at least every 3 years

Life changes: not reviewing the estate plan leads to errors that may lead to significant tax savings being lost or assets ending up with the wrong beneficiaries.

8.      Naming children as beneficiaries

Children as beneficiaries can lead to major problems.  The courts will normally require that a court supervised and costly conservatorship be created to control the money while the child is a minor, which will have the effect of depleting the proceeds

9.      Not understanding IRA/Pension Rules

There are so many tax laws that impact estates in respect to IRAs and pensions (too many to explain in this newsletter).  Very few of these are understood by the average investor.  It is imperative that you understand how each and every one of these may impact your estate.   The cost to not knowing the tax laws may cost you or your loved ones thousands of dollars.

10.      Having too complicated of an estate plan

The K-I-S-S theory (keep it simple) is best used in the average estate plan.  Based on my experience, I have seen trusts so complicated that they do more harm than good.  In fact, the people making the most money are the lawyers trying to decipher the mess.  Not only did lawyers make thousand putting the complicated plan together, their services are required just for the beneficiaries to understand how it is suppose to work.  As is the case in most cases, a second opinion is wise.  If the first estate planning attorney tries to sell you a very complicated and costly trust, please get a second opinion.  Or give me a call and we can discuss the advantages and disadvantage.

I am not an Estate Planning Attorney so please consult with one while preparing your estate plan.  However, I provide my experience and knowledge to my clients as a service at no additional charge.  That way, you have someone in your corner with experience to help prevent being taken advantage of or making mistakes when preparing your plan.  Please call me if I can be of assistance in your estate planning needs.