Friedman Group
  • About Us
    • Careers
    • Privacy
  • Services
    • Business
    • Employee Benefits >
      • Share To Compare
    • Financial Services
    • Personal
    • Specialty Insurance
  • AP Blog
  • Pay Online
  • Contact
  • About Us
    • Careers
    • Privacy
  • Services
    • Business
    • Employee Benefits >
      • Share To Compare
    • Financial Services
    • Personal
    • Specialty Insurance
  • AP Blog
  • Pay Online
  • Contact

Welcome to The Friedman Blog

Seven Costly Estate Planning Mistakes

6/23/2022

 
Estate planning
You've worked many years to create a financial legacy for your family. But estate planning laws are complicated.
​
One or two simple mistakes can derail an estate plan and cost your heirs dearly in time, money and stress. Here are some of the most common estate planning mistakes -  and how to avoid them.
1. Trying to do it yourself
Online "estate-plan-in-a-box" products rarely accomplish the goals intended — and can cause chaos afterwards, as the heirs are left to pick up the pieces.

Always use an attorney who knows your specific situation and objectives.

2. Assuming a will is enough
Your will only addresses items held in your own personal name. It doesn't control retirement assets, life insurance policies, or anything else with designated beneficiaries.

It also doesn't address assets held jointly with someone else.

For example, if you have title to a property in joint tenancy, your interest in the property won't pass to your spouse or heirs. It will pass to the other owner(s). Speak to an attorney about the importance of proper titling.

3. Failure to name and update beneficiaries
Assets like retirement accounts, annuities and life insurance policies bypass probate and pass directly to your beneficiaries — saving lots of time and money.

The catch: You have to designate them by name. Otherwise, the assets go into your estate, and are subject to probate. Name your beneficiaries on each account. And update them after each major life event.

4. Failure to plan for incapacity
Chances are reasonably high you'll be incapacitated and unable to make decisions for yourself long before you pass away.

In too many cases, though, family members and attorneys are helpless to do anything to help because nobody has a legal power of attorney. Be sure to appoint someone in writing who can make financial and medical decisions on your behalf­ – before the need arises.

5. Putting your children on your accounts
Some people try to avoid probate by putting their children's names on bank accounts and other assets.

But it also exposes your assets to the claims of your children's creditors. If your adult children declare bankruptcy or have judgments against them, plaintiffs' attorneys will search for accounts held in their name. They may then present the judgment to the bank and levy your accounts.

6. Leaving trusts empty
Not every family needs to establish a trust. But when they do, it's very common to forget to retitle assets. This means these assets stay in your own name, and never make it into the trust.

This leaves them in your estate, and potentially exposes them to spendthrift children, the claims of their creditors, or disgruntled former spouses. Once the trust is established, make sure to complete the process of transferring ownership of assets to them.

7. Failure to communicate
Estate plans do little good in dust-covered binders in office drawers, where no one else knows about them but you.
​
Speak to your family members. Let them know where your estate plan documents are, who your key advisors are, and what you need them to do.

Comments are closed.

    Categories

    All
    Compliance
    COVID 19
    Cyber
    Employee Benefits
    Personal Insurance
    Property Casualty
    Risk Management
    Wellness
    Workers Compensation

    Archives

    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018

The Friedman Group
501 Bell St.
Dubuque, IA 52001
Phone: (563) 556-0272
Home
Business Insurance
Employee Benefits
Personal Insurance
Financial Services
Contact

AssuredPartners
An AssuredPartners Agency
In February 2020, The Friedman Group joined AssuredPartners, the 11th largest insurance brokerage in the U.S. This partnership provides us access to additional capital and a national footprint that enables us to continue to negotiate the most favorable coverage terms and conditions for our clients, and allows us to provide an even broader spectrum of risk management support services. ​
© 2022 The Friedman Group, Inc.  Privacy Policy.