Page 17 - Book10E

1 . Not getting around to it . The most common mistake is not getting around to estate planning.
2 . Believing the myth that estate planning is only for the wealthy .
This is false. Estate planning is important for everyone who is con- cerned about where his assets will end up upon his death. Often, when taking the value of a home into account, people are surprised to find that their “estates” are larger than they thought.
3 . Not reviewing or updating your will . Birth, adoption, divorce, death, and other factors may change the beneficiaries in your will or the assets you plan to leave them. Major changes in your family structure and significant changes in assets or in tax legislation all present instances where you may wish to review and update your will.
4 . Not using tax-planning strategies . There are several ways in which you can minimize or even avoid paying estate taxes. Sit down with your accountant or financial planner to discuss estate tax planning strategies.
5 . Failing to provide information regarding assets and documents .
Having all of your documents in order is useless if no one can find them. Someone you trust needs to know where your assets and important documents are kept.
6 . Leaving everything to your spouse . The government offers an estate tax credit. However, by leaving all your assets to your spouse, you essentially sacrifice their share of this benefit.
7 . Not planning for your children . While people typically mull over their assets, they can forget that guardianship of minor children is an important consideration. This entails some careful thought and decision making.
8 . Not accounting for jointly owned assets . Many people mistakenly believe that their will dictates where all their assets will go. However, many assets, including bank accounts, retirement plans, real estate, IRAs, and annuities may be cosigned and, therefore, will become
Estate Planning 7