When you are creating an estate plan, there are some special considerations that you have to take into account. While not all of these mistakes will affect everyone, they are very important if they pertain to you.
One issue that you must account for is taxes. It is important to ensure that you write up how your estate should take care of taxes for specific assets. In some cases, the estate plan might note that taxes should come out of the revenues of specific assets, but the revenues might not be enough to cover taxes, so a plan must be established. You must also make plans for gift taxes if there will be gifts given from the estate.
Sibling rivalry is another issue that must be considered. It is vital that you discuss your estate plans with your children so that they can know what to expect. If that isn't possible, you should spell out what is to go to whom as specifically as possible. Make sure you list who will get items like jewelry or other items that might lead to battles.
You should make sure that your will spells out your own wishes. Allowing people to influence you can impact the validity of your will. You should also make sure that you keep it updated, especially when you have big life changes, such as divorce, occur.
Having a detailed estate plan that is legally valid can help to stop your loved ones from having to battle things out in court when you are gone. Addressing possible issues now can help to make life easier for your loved one during the stressful days after you are gone.
Source: MainStreet, "Here Are the Worst Estate Planning Mistakes You Can Make," Jason Notte, July 13, 2015