6 Most Common Estate Planning Mistakes You Can Easily Avoid
Estate planning helps in course of proper disposal of a person’s belongings after his or her death. While the study refers that more than half of Americans over the age of fifty-five don’t have a will.
This is a primary mistake to ignore the necessities of estate planning, while many think making a will may be expensive and for this reason, they avoid it. While the top estate planning law firms in California provide professional service at a reasonable price.
So not having a will is a big mistake, while there are other estate planning mistakes those you can avoid.
If a person dies without a will then the beneficiaries need to identify themselves to inherit the property. Now for a silly mistake in estate planning can make your entire effort fruitless and for a clear overview regarding the estate planning mistakes, we will mention those in the following section.
Unacceptable possession of assets
In many cases, business owners make the business property in their name or form a trust in disguise. In such cases, the proper heir or heirs can’t claim the properties in their names, as this was not the legal holding of properties. The federal estate planning law doesn’t approve any improper ownership of properties and for that reason, estate planning doesn’t include such assets.
Putting spontaneous names on the deed
Many Americans crafts their will with the thought that they will leave behind something for everyone they loved or cared for. Now, this is a very generous decision but at the same time, the person should consider that any gift over $15,000 is subject to taxation under the U.S. Gift Tax law. For this reason, it is advised to employ a professional estate planning attorney in California for crafting a proper will.
Keeping children as joint owners
In case of any unwanted situation, the judge picks the guardian if you have joint-properties with your children under the age of eighteen. In such cases, keeping the spouse as the joint owner is best, as the other spouse can take care and distribute the property rightly after one’s death. In our opinion, always avoid keeping children as co-owner of assets.
Ignoring the Estate Tax Liability
The inheritor needs to fill the state and federal and state inheritance taxes without a will or estate planning and that costs a significant amount. Estate planning helps to avoid huge estate tax liabilities or probate and this is another reason behind the increasing interest in estate planning. In California, estate planning services inspire everyone to create proper estate planning to protect the beneficiaries.
Overlooking disability care for long term
After a certain age, people need long-term care and in case of any disability, the expenses are much higher than usual. People creating their will at the middle-ages doesn’t consider the expense of long-term disability acre and for that reason, they may suffer at the old ages. So while estate planning long term realistic thought should be obtained despite overlooking some real scenarios.
Not modifying the will over time
Our situation and thoughts change over time and in many cases, this happens with many person beneficiaries. The properties of a person, who don’t have any children, go to his or her close relatives after death. In such cases, the professional estate planning lawyers in California can help to update the person’s will from time to time as per requirements.
Create a will to protect your properties for the longest time
With time the craze for estate planning is increasing and for the people in California, estate planning is becoming a mandatory step to protect their beneficiaries. While a person dies without a proper will, then the state judge distributes the properties of a diseased person to his or her closely-connected relatives by blood relation. In many cases, the beneficiaries don’t even know the diseased person.
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