Proper estate planning allows you to make informed decisions about how to handle your assets now and after your death. Having a plan in place gives you and your loved ones peace of mind, knowing that you had the opportunity to maximize the value of your estate and make the designations you wanted. At Ruggiero Law Offices, we're honored to help in any way we can, including by providing you with the knowledge regarding the three top estate planning mistakes to avoid.
1. Not Updating After Major Life Events
Make sure to revise your estate planning documents after each major life event. For example, if you move to a new state, documents executed in your previous home state might not meet the new state law requirements.
Additionally, if you divorce your former spouse, it's crucial to review your beneficiary designations, since the end of your marriage doesn't automatically invalidate any gifts made under a life insurance plan or an IRA.
Other major moments that affect estate planning include new children, remarriage, the death or marriage of a named beneficiary, or separation from your spouse.
2. Naming Minor Children as Direct Beneficiaries
It's essential that an appointed guardian holds property from an estate for a minor, as children less than 18 cannot receive assets directly from an estate. By designating in your will a custodian or trustee for any minor children you select as beneficiaries, you'll spare your loved ones the difficulties of court-appointed guardianship.
3. Not Updating After New Estate Tax Laws
As you work on your estate planning documents, make sure to consult with professionals who are familiar with the current tax laws. The estate tax exemption amount has increased significantly over the past decade, so people who completed their planning years ago need to assess whether their plans are as tax-efficient as possible.
Knowing the common estate planning mistakes will help you avoid these issues in your legal affairs. At Ruggiero Law Offices, we can help. From crafting revocable living trusts that avoid probate to implementing sophisticated tax planning strategies, we deliver tailored solutions based on decades of experience. Our clients trust us because we take the time to understand their unique circumstances and provide straightforward guidance without confusing jargon or extra hassles. Let us get to work securing your future today.