6 Expensive Estate Planning Mistakes

The issues surrounding late Soprano’s actor James Gandolfini’s estate provide another example as to why proper estate planning is so important. Below are six mistakes that people often make that could cause headaches:

1. You are not too young for a will. Not having a will can create a lot of hassle when it comes to naming a guardian for yourself or your children. Creating an estate plan is not that costly when contrasted with the consequences of not having one.
2. Avoid placing property into joint ownership. Adding a person’s name to an asset like a bank account can create problems, thus, it is better to designate in a will.
3. A will is not the final word. You might forget about other assets like a 401(k), insurance policies, or an IRA.
4. Avoid letting the beneficiary squander the inheritance. Creating a trust can be a good way to manage the allocation of estate assets.
5. Avoid creating sibling rivalry. Disputes between children over a decedent’s estate often cause rifts in families. It is good to plan ahead to avoid these types of problems.
6. Do not make over-complicated plans. Using complex estate planning techniques, like creating a bypass trust, has its own set of problems. Speak with an attorney about the different viable options.

See 6 Costly Estate-Planning Minefields, and How to Avoid Them, Consumer Reports, Apr. 14, 2015.