Estate planning: Common mistakes people make

On Behalf of | Dec 23, 2020 | Uncategorized

Planning his or her estate is one of the most significant things a person can do for his or her family and the hard work he or she has performed throughout his or her life. That is why so many people in Illinois and around the country take the time to create an estate plan no matter how many assets they have. However, because this is such a rare process for someone to undertake, mistakes tend to occur.

Beneficiary mistakes

According to attorneys, not properly naming a beneficiary for items such as insurance policies and retirement accounts is an error people frequently make during estate planning. There are two types of mistakes a person can make when it comes to a beneficiary. Either someone forgets to add a beneficiary, which will force his or her family into probate, or the person forgets to remove an ex-spouse.

Disastrous gifts

It’s safe to say that most people want to leave assets to their relatives when they pass on. One of the most popular includes the family home, which is often bequeathed to the children. However, that gift can end up being a pricy nightmare for everyone involved. Property and estate taxes are just some of the things they may have to deal with. Thus, it is important to discuss these issues with your children before adding them to your estate plan.

Leaving funds to minors

The reality of life is that one never knows when his or hers is going to end. Thus, a common mistake parents make is leaving funds to their minor children, believing that they will be adults by the time they gain access to it. If the parents pass away while the child is a minor, no one will be in clear control of the funds. This can lead to lengthy and heated legal battles with other members of the family.

Estate planning is a complex process to go through with many legal hurdles along the way. Therefore, it is important to seek an attorney’s services while you create your estate plan.