Top 5 Trust And Will Mistakes

By Author: Smith Clea
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So what are the top 5 mistakes made with will & trust?

Here are five common mistakes to avoid with your will and trust:

1) Failure To Execute the Will or Trust

Once a will or trust is drafted, it’s important to review it and ensure that everything is updated.

Many people neglect to review their documents regularly.

When an estate plan goes un-dated, it can create problems as well.

Your will or trust should be reviewed at least once a year by a legal professional who has been provided with power of attorney over your estate plans.

Failure to act in time could mean tax liabilities for beneficiaries.

litigation between those named in your will and those not named you name it.

Keep up-to-date will & trust documentation filed with an executor you select in advance so all stakeholders are aware of updates.

This way, when you pass away, no one needs to scramble to figure out what you really want to be done with your assets and how best to proceed with settlement.

The point here is: to get ahead of will & trust issues now before ...
... they arise.

2) Failure To Update the Will or Trust

Even if you have a trust or will, it’s always a good idea to check in with your estate planning attorney at least once every few years.

These documents do not stay frozen in time.

The law and your life situation can change over time, and it’s important to take stock of these changes.

3) Being Underinsured

One of the top mistakes people make is to underestimate how much coverage they actually need.

For example, you can’t always count on your spouse to be around to manage your financial affairs in case you get sick or die.

But if you don’t have an appropriate will and trust, then it falls back onto your family members who might not have a full understanding of what needs to happen next.

This can lead to expensive legal proceedings and a lot of emotional stress for everyone involved.

Make sure you choose the right beneficiary and write everything down so there are no ambiguities about who should get what once you die.

4) Failing To Consider Taxes
A major consideration when drafting your will or trust is how they might be affected by taxes.

It’s often a good idea to consult with an accountant or financial planner before putting pen to paper.

So you can best understand how estate planning could affect your family’s total wealth in future years.

If you have young children, for example, it might make sense to put off estate planning until after they reach adulthood.

This way any inheritance goes directly to them and not through your estate.

5) Outliving Assets

As we grow older, it’s common to find that our assets are starting to outlive us.

For example, you might plan on leaving your children with a sizable inheritance.

But if you live too long, you could potentially run out of money and leave them with nothing at all.

It’s always important to discuss wills and trusts with your accountant or financial planner.

Talk about ways you can ensure that your kids won’t be left in dire straits.

Find Out more on will vs trust in Michigan

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning, probate, living trust vs will and more about legal family issues. Author Clea Smith can be reached through rochesterlawcenter.com