Although many people recognize the importance of estate planning, not everyone in the Lee County area knows all the answers. There are many important steps to consider when people are planning for their estate and their loved ones. Some steps are crucial in order for people to get the most out of their estate plan. At the same time, there are some critical errors that people can make that can be very costly.
According to an article from CNBC.com, people should not think that they are done with their estate plan just because they have created a trust. Getting a trust established is just the first step. That’s because a trust is just a piece of paper unless it actually holds assets. That means that people have to fund their trusts in order to make them worthwhile.
Another mistake that people often make is to get everything set up then never go back to review and revise their plan. Life’s situations constantly change, which means there’s a good chance that people’s estate plans should change too. Another mistake is to give away too many assets too soon to one’s children. It’s often better to set up a trust to be paid out later in life so that children are more prepared to handle the money.
Meanwhile, according to an article on Forbes.com, people need to make sure they understand the death and inheritances taxes in the state in which they live when it comes to estate planning. Not being aware of how these taxes and rules apply can be very costly to one’s beneficiaries.