Common Mistakes When Planning An Estate
In the previous blog entry, we talked about some common mistakes people make when planning their estates. Today, we’re going to expand on that.
Many times, people name an executor in their will who is not the best person for the job. The executor is going to be in charge of your estate, and will need to collect and verify your assets, find any debts you owe and pay those, and make sure what remains is distributed fairly and according to your wishes. It sounds simple, but there are many steps in each task that have to be done correctly in order to timely administer your estate. It’s important for the person you appoint to be someone who is responsible and trustworthy.
When distributing assets, it is also a commonplace mistake to not consider how you want your assets distributed. Do you want your children to all get an equal share? Do you want any grandchildren involved? A Durham estate planning attorney can help you draft a will that spells out what you want to happen and how you want it to happen, including if any of your heirs are minors.
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Your assets may also be impacted by any taxes that must be paid on your estate. It is important to think about what has to be paid to the state when planning your estate. You want to make sure to leave enough assets to cover these payments.
Finally, people often assume that an estate plan cannot be changed, but this is simply not so. It is actually important to update your Will and other documents as your life changes, for example, with the birth of a child. Although you do not want to make any rash decisions—having a fight with a family member does not mean they shouldn’t be in your will anymore. Take the time to make thoughtful decisions about your will and estate in order to best take care of your loved ones.