3 Most Common Estate Planning Mistakes to Avoid

When it comes to preparing a proper estate plan, it's not easy for anyone to miss the boat. Most individuals believe that they are too young and poor, so they don't need to have an estate plan, but it's not the case. Whether you are so young and having the modest assets, your loved ones will have to face several difficulties after your sudden death. This circumstance can also turn into substantial conflicts between your survivors that will be a tragic experience for your family. So, it is always recommended to prepare a proper  estate plan.

In this post, you will find some of the most common mistakes that must be avoided when you are preparing the estate plan:

Assuming Estate Plan is Only for the Rich People

Most individuals think estate planning is something only the moneyed need to think about. But, every person having personal and real assets must have an estate plan. Whether you have less property; you really need to assure that that property is distributed to your kids or other nominees as easily as possible. With a well-prepared estate plan, you can ensure that your wishes will be carried out without any difficulties.

Relying only on a Will to Carry Out Your Assets

Let's say you prepare a simple Will that transfers all your assets to your spouse. Besides, you have four accounts whose beneficiary is your father, just because you never renewed the paperwork when you got married 15 years ago. If you suddenly pass away, your Will does not conclude who gets your 4 bank accounts. Again, failing to make a proper estateplan can result in an unexpected distribution of assets and leave your closed ones with a financial insufficiency.

Losing Power by Adding Someone to Your Bank Accounts

When you add an individual to your account, you are addressing that account to his or her beneficiary. You may also be unknowingly providing that individual an ownership credit in your account that may affect your gift tax privilege. If you need an expert to manage your finances, you should appoint an attorney or agent while giving them the authority to handle your transactions without revealing your property to their creditors. With an impulsive living trust, you can also achieve the same while transferring your accounts to your trust.

If you are confused while executing estate plan, you can always seek reliable advice from a trustworthy attorney. Law Office of Michael C. Maddux is the most trusted Probate attorney in Orange County provides legal services at the highest professional level.