There’s a unique time in history when the past generation begins to slow down or pass away. It is at this moment that a large amount of money begins to be transferred to the current generation. In fact, according to reports, over $68 trillion of wealth will exchange hands within the coming years throughout Florida and the entire country. This process of transforming funds from one person to another can either be extremely difficult or extremely smooth. It is only those who’ve had taken the time to plan their estate, which tends to have an easier time. Therefore, the following includes some of the most common mistakes to avoid making on your estate plan.
Adding minors to your estate plan
It’s understandable to want to put a few of your grandchildren as beneficiaries, but the fact is that you need to think about what happens if you pass away while they are still minors. While estate planning, you should always take the law into consideration. The issue with minors is that they cannot legally take control of any of the funds that you pass down to them, leading to a variety of court case battles.
Don’t throw a tax wrench into the mix
It’s safe to say that nobody wants to deal with paying high taxes, and thus you shouldn’t want that for your family after you pass away. Assets such as real estate can be passed almost tax-free through an estate plan but not 401Ks or retirement accounts. Unless those funds are going to go to your living spouse, other members of your family will have to pay tax on that inheritance.
Not being clear who the beneficiaries are
It is often the mistake of the estate planner to forget to add people to the document. This, of course, can lead family members to feel betrayed even if you didn’t mean to leave them out. Always consult with a close family member to help you run through the names you intend to insert into your will.
Estate planning can be a tedious and complex process. Thus it is important to ensure that you have the right attorney by your side to ensure that all legal hurdles are addressed properly.