Why work so hard to accumulate wealth for your family if your final wishes are not fulfilled or leave your family much less than anticipated? With the help of an estate planning lawyer, through wills, trusts and other documents, protect your loved ones and avoid making these four common mistakes in estate planning, which can cost you dearly.
Dismiss the help of an expert People don’t hire an estate planning lawyer so they can save a few bucks. You can write your estate planning documents yourself. You can find essential wills templates and other material online or in libraries. However, make a small investment and ask an estate planning lawyer to review the legal documents to ensure everything is in order. Most of the estate planning documents available on the internet don’t entirely satisfy the need of a particular person. People use internet documents, documents extracted from heritage planning books or materials lent to them by their friends. However, they end up ruining their patrimonial plan by not understanding the legal and technical aspects of the documents. A common mistake is that a client signed a paper in which he transferred his home to a trust, but he had not correctly created said trust. For this reason, the document was not valid. The confusion of another client regarding the term “beneficiary” resulted in the immediate transfer of all his assets to his children and imposed on him the obligation to pay them an annual income, which left his wife on the sidelines.
Do not include business in the estate plan If you have your own business, include it in the equity scheme. Parents sometimes do not want to talk about it with their children and directly leave them the family business. The typical dilemma presented is how to distribute the business equitably among children who work in the family business and those who do not. It is best to consult a Jacksonville estate planning lawyer on how to handle this situation. There is a case where a couple operates a family owned business. Their two children help them run the business, and their three other do not. When the parents died, the children were reunited after the death of their parents, three of the children who did not work in the family business wanted to know how much they would receive from the family. The two brothers who did work in the firm argued that they had to sell it to pay inheritance taxes. They closed the business and sold it well below its value. The two brothers who had shared the family business opened a new one, but less successful. This situation could have been prevented if the parents had bought a life insurance to cover inheritance taxes or an equitable distribution that included the children who did not work in the business.
Leave vast sums of money If your estate also includes some amount of money, make sure it makes a difference in the lives of your family and leave it in a trust, rather than in cash. There’s a case in which a father left $ 250,000 to his heroin-addicted son, who, in six months, was left without a penny. Probably, a trust would have been the best option, as it is the most efficient way to protect people from themselves. A Jacksonville estate planning lawyer will assist you to arrange a trust agreement. With a trust, you transfer the assets to a trustee, who is bound by a trust agreement. Instead of passing directly on to a beneficiary, the trustee retains his assets and distributes them according to his instructions. It is one more measure of protection. The most common types of trusts, revocable life trusts, and irrevocable trusts may contain so-called clauses against the beneficiary’s expenditure. An anti-spending clause prevents a recipient from receiving advances or attempting to obtain a loan using their interest in the trust as collateral. It also leaves out the creditors of the beneficiary, since the recipient has no control over the funds of the trust or access to them. Related Video: