Three Biggest Mistakes People Make in Estate Planning

It is estimated by Consumer Reports Magazine that almost 2 out of 3 Americans die without a will. When a person dies without a will it said that the person died intestate, which results in the state deciding how to distribute their property.

1. Failing to make an Estate Plan. There are numerous reasons why people don't create a will. The most important reason is the lack of understanding of the importance of creating a will. Most people are clueless about the significance and complexities of what happens to their property and the distribution of their property after they die and its impact on their family and loved ones. Depending on the circumstances, it may take the state years to distribute assets of an estate.

2. Attempting to draft their estate plan without a legal professional. There are many self-help legal books and business entities that instruct people that they do not need a lawyer to draft their own will and other estate planning documents. A disastrous mistake that is often made by people that rely on Do-It-Yourself planning is relying on information that is based on outdated laws. Laws are always changing and wills can be very complex, most people do not know that estate planning documents are often rejected for being poorly drafted according to state laws.

3. Failing to fund their estate. Without the ownership of assets, it is impossible to distribute property. In other words, the value of an estate is dependent upon having property to distribute property. It is proper to transfer the title of assets to the name of your estate so that those assets can be acknowledge as belonging to your estate.

Disclaimer: The information written above and found within this blog does not and is not intended to constitute legal advice, The information does not form an attorney client attorney client relationship.