Whether you have just a few assets or a wide range of high-value properties and interests, a well-built estate plan is crucial to ensure your wishes and directions are implemented in the event of your death. While many leave it up to their estate planner or attorney to lead the development process, there are some common mistakes made when it comes to estates that can be easily avoided with a little bit of preplanning and forethought.
Not Understanding Tax Implications For Your Heirs
This mostly pertains to naming trusts as an IRA or other retirement plan beneficiary, which can cause undue tax burden for the trust or those inheriting anything you’ve directed for them. Certain retirement accounts have tax deferrals and that language and process need to be carefully crafted with the help of an accountant and estate attorney.
Understanding Who Might Actually Want That Gift
As you build your estate, it’s important to consider who might actually want that expensive property or the powers of attorney over a fledgling business. It’s imperative to have conversations with those who you’d like to designate as heirs to make sure they’re ready for the responsibility of whatever you’d like to leave for them, especially if it has a high value or significant ongoing maintenance.
Not Keeping the Plan Updated
If there’s any major change in your life such as birth, death, divorce, marriage, or large commercial transaction, those milestones are a good opportunity to make sure your estate is updated to reflect those changes. As you get older, it may be worth meeting with your estate planner or attorney more frequently to make sure your wishes and directions are up to date.
Building an appropriate and responsible estate plan doesn’t have to be overwhelming. With the help and expertise of the team at The Law Offices of Rusty Williard, we can help craft an estate plan that meets and exceeds your needs and can continue to keep it updated as needed. Call us today at (601) 824-9797 to learn more about what we offer and to schedule a free consultation.