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Some estate planning mistakes should be avoided, but they aren’t!

Some basic mistakes should never be made in the first place. However, unfortunately they happen over and over again. While a comprehensive list of these mistakes probably is not possible, a list of surprising errors were created, according to the Wills, Trusts & Estates Prof Blog in “10 Surprising (or Surprisingly Common) Estate Planning Mistakes.”

A few of the common errors are:

  • People do not name contingent beneficiaries on life insurance policies or retirement accounts. If the beneficiary predeceases the account holder, the money reverts to the estate and requires probate.
  • People like to sell property to a family member for $1 or some other far below the market value amount. This can cause problems with the IRS for the family member, if the sale happens shortly before the seller passes away.
  • Some people name specific investments in their wills. If they no longer hold that asset when they pass away, and if it should happen to be worth a lot of money, then that can force the estate to purchase that investment.
  • Giving gifts without regard to the impact those gifts may have on the lives of the recipient.
  • Leaving money for minors, without creating a guardianship for it.

Reference: Wills, Trusts & Estates Prof Blog (June 5, 2018) “10 Surprising (or Surprisingly Common) Estate Planning Mistakes.”

For more information on asset preservation and estate planning, please visit my estate planning website.

Mr. Amoruso concentrates his practice on Elder Law, Comprehensive Estate Planning, Asset Preservation, Estate Administration and Guardianship.