HARRY'S TOP 5 ESTATE PLANNING MISTAKES TO AVOID
How many people have a living trust? How many people reading this post have an estate plan in place in case they die at any given time? This is a serious matter for many people. Humans think they have plenty of time and will do it later down the road. That is the wrong attitude to have during these times. Probate takes time and money.
Here are my Top 5 Estate Planning Mistakes To Avoid:
- Procrastination-Too many people wait to the last minute to take care of things. Get it done this week. There must be a sense of urgency when it comes to estate planning.
- Secrets-Parents always keep their money and debts to themselves to the grave. Then, their children have to scramble at the last minute to figure things out. That is not fair to them since they have their own set of responsibilities. Families have to communicate with one another at all times.
- No Will-People die without wills on a daily basis. People with a net worth of $2 million or more need a strong will in place to avoid probate. Hiring a professional estate planning lawyer is money well spent.
- Assume-Many people assume that their assets will go to their children upon death. That depends on the state laws at that time. Estate planning takes away the guess work.
- Do not worry-It is done-A great estate planning lawyer will contact their clients at least twice per year to see if things are still the same. I represented my next door neighbor in selling her house. Her papers were not correct when selling her house after her husband died after 51 years of marraige. She had to spend an additional $3,000 to fix the problem so that she could sell the house. It is never over. Our lives continue to change as we grow older.
I hope these tips help you. Personally, both of my in-laws were diagnosed with dementia. They had nothing set up. So, my wife and I had to scramble to take over their assets to pay for their care. It took us about a year to get a handle of their assets by sifting through their paperwork. They lawyer fees were huge. All of this could of been avoided if they would of went to an estate planner. Here they wanted to save money. However, we had to spend money to get money. Life is so ironic at times.
Let this be a lesson to all of you. I would love to hear your comments.