Avoiding These Eight Red Flags in an Estate Plan

A true estate planner is able to foster trustworthy relationships with their clients while serving them in the fullest capacity. If you notice a gap in an estate-planning document, realize this red flag and know how to solve it.

When creating an estate plan, one goal many clients have is to avoid probate; on the other hand, a lot of clients draft a properly written will. Make sure that your clients goals are met and fill any gap in this estate-planning document. If a trust is in the estate plan, make sure that there is proper funding. Also, protect your client’s assets from creditors by never leaving valuable assets exposed. Similarly, do not leave inheritances in the hands of uninformed beneficiaries who can expose their gifts to creditors as well. Another good idea is to appoint trustees in a manner that gets the job done; you do not want fighting or miscommunication to burden future heirs. Furthermore, a planner should make sure that all account beneficiaries are updated along with any estate-planning documents. Accordingly, life insurance should be right for your client’s situation, determining whether too little or too much insurance can pose a problem. Finally, emphasize to your clients that they need a long-term care arrangement, helping with any unforeseen medical expenditures.

See Eight Red Flags That Your Client’s Estate Plans Are Out of Whack, Wealth Management, August 5, 2016.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.