Most people utilize trusts and other estate planning tools to reduce stress on the beneficiaries. There are certain mistakes, however, that can still cause your family members headache when you pass, despite your good intentions.
We understand both simple and complex estate planning and have helped many of our clients establish their estates. Keep reading to learn which mistakes to avoid making while setting up your affairs.
Titling assets improperly
According to an article on Forbes.com, this is one of the most common mistakes. Certain retirement assets, such as IRAs or 401(k) plans, transfer differently than you may realize. It is important to keep your beneficiary designations updated and ensure to title them correctly. Failure to do so could result in these assets passing on in a way that you do not want. If you forget to remove a deceased spouse from your beneficiary designation, for example, that will make things more complicated when you pass.
Choosing the wrong trustee
Death is a stressful time for anyone involved. While it may make sense to name one of your children as your trustee or fiduciary, you may be adding more stress to their lives during their time of grieving. Acting as a trustee for someone’s estate is stressful and time-consuming. Not only that but if you have more than one child, discord may result from choosing one over any others. Conversely, choosing multiple children to serve as trustees can also create disagreements and complications down the line. You may consider choosing a trusted but uninterested party to serve as your trustee or fiduciary instead. More information about this topic is available on our webpage.