Estate planning

8 real estate plan mistakes to avoid


2. Misunderstood or underutilized plans

Some people don’t understand their estate plan, so it doesn’t reflect their desires, says Jason Deshayes, a CFP at Cook Wealth in Raleigh, North Carolina. In this case, ask the financial planner to explain the documents to you. “Complete the process and carry it out, until the plan works.”

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Sometimes others don’t benefit from a person’s plan after that person signs the documents, says Karen Van Voorhees, a CFP specialist at Daniel J. Galli & Associates in Norwell, Massachusetts. This is especially true of trusts, which allow a third party to hold assets, such as a home, on behalf of the beneficiaries. Why did you create it, she said, to ask yourself – to own your house or some other asset? If you don’t know how to use your trust, ask your attorney.

3. Wills that determine investments

If your plan includes investments that you want to leave to one or more beneficiaries, make sure you still own them, experts warn. If not, your property may be required to purchase it at higher current prices, which could harm your beneficiaries. In the worst case scenario, this purchase could drain most or all of the assets from your holding.

4. Plans that do not comply with current laws

Serra says that failing to update the plan could render it worthless due to changes in the law and the people named in it. He once reviewed a will created in 1976. “There was a long and arduous process of settling the estate, which led to unnecessary expenses and family strife. Pay the lawyer now or pay the price later.

Dechaise suggests revisiting your plan every three years or more often, as needed. He recalls one scheme that listed elderly parents, who had died, as guardians of children who were already in their 30s. If the trust document is old, the trustee will be required to do things in a certain way that may not make sense now.

5. Conflicts and errors of beneficiaries

Beneficiaries also need careful attention, says A. Raymond Benton, direct contact officer for Benton & Company in Denver, Colorado. “review retirement plans, Irish Republican Army And pension contracts Make sure that the beneficiary designations do not conflict with your documents.

Be sure to update your beneficiaries on insurance policies and 401(k) plans in the event of a divorce, says Hershel Clanton, CFP at Counselor Wealth Management in Atlanta. “I saw the ex-wife as a beneficiary, which disappointed the current wife when the husband passed away. The insurance company and 401(k) provider paid the policy beneficiary the amount as written.

Don’t forget to name the potential (or standby) beneficiaries, so the assets in the will don’t expire in the event of the beneficiary’s death, says Lindsey Graves, a senior attorney and founding partner of Graves Law Firm in North Canton, Ohio. .


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