Five common estate planning mistakes to avoid

Trust and estate planning is an important part of ensuring the security of your family’s future. Here are five common trust and estate planning mistakes and how to prevent them.

1. Not Planning Ahead

Failing to have an estate plan in place can be a costly mistake. Without a valid will or trust, assets may not be distributed according to your wishes when you pass away.

Without an estate plan in place, it’s likely that probate proceedings will take much longer than if one had been created beforehand, resulting in increased legal costs for those involved.

2. Failing To Update

Your Plan Regularly Laws and regulations change over time, and without updating your estate plan, parts of it could no longer be valid or effective. Changes in life circumstances also affect how you achieve estate planning goals.

3. Not Including Funeral And Burial Wishes

If you don’t include funeral and burial wishes in your estate plan, your family may struggle to make important decisions about your service or memorial. Without these instructions, family members often feel overwhelmed and unsure about how to honor their loved one’s memory.

4. Neglecting Tax Considerations

When it comes to trust and estate planning, one of the most important considerations is taxes. Estate planning professionals can determine what strategy is best to reduce taxes, such as setting up trusts, donating money/property to charitable organizations, or distributing assets to family members with lower tax brackets.

5. Failing To Plan For Incapacity

Incapacity planning is an often overlooked but essential part of the estate planning process. Without this important step, you could be leaving your loved ones with a difficult decision in the event you cannot make decisions for yourself.

Disclosure

This information is not designed, meant, or constitute the rendering of legal or tax advice. One should consult with an attorney or tax advisor before implementing any strategy discussed here.

Trust services provided by Members Trust Company are not federally insured, are not obligations of or guaranteed by the credit union or any affiliated entity and involve investment risks, including the possible loss of principle. Members Trust Company is a federal thrift regulated by the office of the comptroller or the currency.