4 Common Missteps in Estate Planning
Because we have helped a lot of individuals through both the planning and the sorting process, we have learned that inattention and procrastination can hurt family wealth. Although some estate planning is better than none, sometimes people address wealth transfer issues inadequately when they go it alone. Here are some classic missteps:
First: Waiting too long. A wealthy individual may postpone estate planning until too late in life, which may present obstacles due to diminished faculties or declining health.
Second: Poor communication. Failing to discuss details of an estate plan with a spouse, an executor, a charity, or heirs may lead to assumptions and differences in expectations—potentially setting the stage for more difficult conversations after you pass away.
Third: Choosing the wrong executor. Some people lack the interest or temperament to carry out an estate plan. Others face a steep learning curve. Sometimes, an executor is chosen regardless of his or her health—and passes away before the grantor does.
Fourth: Failing to update beneficiary choices. Beneficiary designations on retirement savings accounts and life insurance policies can potentially override bequests made in your will. Outdated designations may result in ex-spouses or estranged children receiving life insurance proceeds or retirement plan assets.
How up-to-date is your estate planning? Call or email us today so that we can review your estate plan and use our experience to your advantage.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation. Kimball Creek Partners and LPL Financial do not provide legal advice or services.