As much as people plan for a good life and future ahead of them, they tend to forget about what would happen after their lives end. Estate planning is an excellent way to help you manage the risks that you might night be able to control once you pass away. Since it might be a complicated process, it would be better to talk to an estate planning attorney miami. Know more about the mistakes commonly committed in estate planning and how to deal with them using the list below.
Improper Asset Ownership
If you have overlooked essential details in asset ownership, it might become a problem in the future. One common mistake that spouses make is not having joint ownership over their properties. Although there are instances when they want to keep properties to themselves, it might create inefficiencies upon transferring different assets. Estate planning attorneys advise married couples to have properties named after them so that there are creditor protection as well as a smooth transfer process.
Some people try to cheat the system by naming the property after their kids or selling it for a dollar. However, since these transactions are treated as gifts, your kids might have a gift tax liability. If asset ownership concerns are improperly handled, it might have adverse effects on your estate and another end of life plans.
Lack of Liquidity
A liquid asset is valuable after death as much as it is crucial during life. If you are planning to split an estate among your children or living spouse, make sure that it has the right amount of liquidity. One of the effective ways to make sure that your estate is liquidated after death is through life insurance. This way, your wealth is appropriately split. It can also help your surviving family members pay off any debt you might have left behind. You should also talk to a financial advisor and consult them about the right liquidity you want. With this, you can start planning how to get such an amount.
Ignoring Minor-Aged Beneficiaries
One of the estate planning’s primary function is to make sure that you leave your children with enough property. Although your children might still be young, you still have to make sure that the money you are leaving them with is used for their future.
Carefully pick out a guardian that you can trust to take care of your children. Aside from naming them, you should also leave them with detailed instructions on how to use the money instead of leaving it up to them. Inform the designated guardian about their role in case you pass away unexpectedly. You can also choose to get separate life insurance for your children.
There is no general plan that will cater to all of your ideas and needs. What you can do is start planning for your goals to have a clear picture of your future. In case you are still unsure about estate planning, it would be better to consult an estate planning attorney Miami.