Estate Planning Pitfalls
When was the last time that you reviewed the estate plan you created over a decade ago? Well, if you draw a blank as to the aforementioned question, you are not alone. Most of us tend to visit our attorney only the first time that we actually sign the documents, and completely forget about our estate plan thereafter. However, this can lead to major estate planning pitfalls. Given the ever-changing tax laws and the occurrence of major life-changing events such as divorce, death or marriage, it is important that you review your estate plan every two to three years.
Estate planning pitfalls
- In some cases, the fiduciary or trustee named in your estate plan (created years ago) might no longer be suitable for the position. For instance, the relative you appointed to take over the responsibility of your affairs might have grown too old to function adequately or even be deceased. In case you named a professional CPA or attorney, it might be possible that he or she doesn’t practice anymore.
- If you created your estate plan early in your life, you might have stipulated instructions for the guardianship of your little ones, who might not be little anymore. You might have to re-adjust your plan according to the financial dependency of your children who might now have a job or even be married. Also, over time, your initial goal of equal inheritance might have changed, given the fact that one of your kids is more financially unstable than the other.
- If you have moved your residence to another state, you might encounter certain legal issues (i.e. tax related) regarding the transferring of your assets. While some states operate as community property states, such as California, others are considered common-law property states.
In addition to reviewing your estate plan every once in awhile, you also might want to consider notifying your children and fiduciaries about the inventory of your assets and the contact details of your estate-planning team. This is to ensure that they know whom to contact in case something happens. When considering planning your estate, contact our team of knowledgeable Estate planning lawyers in Sacramento CA. Call us today at (800) 835-2634 for more information and free consultation.