Avoid These Mistakes When Creating a Trust or Will

Estate planning is something we complete so that our heirs and beneficiaries will have an easier time when we are gone. Indeed, a well-planned trust or will can save our loved ones time, money and stress. That said, there are many pitfalls that the average Florida resident must try to avoid while planning an estate to ensure that his or her wishes are carried out.

One common mistake involves leaving money to a son or daughter with private instructions that some of it be donated to charity. A plan like this might seem logical if the son or daughter is trustworthy. However, the life circumstances of your heir could get in the way of him or her being able to carry out those plans. Also, the heir will not be legally obligated to pass the money over to the charity, and it might not ever happen. Creating a trust or will with specific instructions about money going to charity can be one way to ensure that the charity will actually get the funds you intended it to receive.

Letting your estate plan go stale is another typical mistake. Life circumstances can change in an instant. Whether it is a divorce or a death in the family, life changes may result in the need update your will or trust. What if, for example, the relative who you listed as the manger of your estate becomes an alcoholic or develops a health problem that would prevent him or her from being able to carry out the responsibilities?

There are a lot of other mistakes and pitfalls that a California estate planner can make, and one of them involves not hiring a professional. Going it on your own and completing a will that you found on the internet may not be enough to solidify your estate plan. Indeed, an estate planning attorney will know what to look for and what questions to ask you in order to avoid mistakes and ensure your wishes are followed when you are gone.

Source: Financial Post, “Your grandfather’s dead. It’s my money now: Five estate-planning mistakes to avoid” Melissa Leong, Oct. 29, 2014