Now that the markets and economy has stabilized and estate sizes may have changed, as well as the fact that the estate tax laws may change significantly over the next 2 years it is time to revisit our estate plans. Following are the top 10 errors I see people making with their estate plans. If we are making one of these errors, now is the perfect time to make the proper changes.
Top 10 mistakes people make with their estate planning:
1. Not having a current will or trust
2. Choosing wrong Guardian
3. Not naming back up trustees
4. Not funding trusts
5. Not coordinating beneficiary designations
6. Not taking advantage of gifting exemptions and/or gifting wrong assets
7. Not reviewing plans at least every 3 years
8. Naming children as beneficiaries
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.