Estate Planning as a Career

I’d like to discuss eight critical estate planning mistakes that can create serious problems for those you leave behind. These estate planning mistakes can be easily avoided.

1. No Plan At All: Probably the worst mistake you could make is having no plan at all. It is estimated that between 50% and 70 % of Americans do not have a Will. You are the only one who can protect yourself, your loved ones and your hard-earned assets. The intestate laws of Connecticut will determine who inherits your assets when you have no Will. You can refer back to the February, 2009 issue of STRUCTURES to see what that Will would look like. Also remember to review and update your estate plan regularly.

2. No Estate Tax Planning: With proper planning, a married couple can protect up to $4 million from State of Connecticut estate taxes and $7 million from Federal estate tax. The basic level of planning to accomplish this is called a “Credit Shelter Trust”. In larger estates, irrevocable life insurance trusts, qualifired personal residence trusts, charitable trusts and family limited partnerships can be used to protect assets from estate tax. Without such planning, an unexpected and surprisingly large estate tax due can be due.

3. No Incapacity Planning: There is more to estate planning than distributing assets after death. A comprehensive estate plan begins with planning for your own incapacity. You should name a health care representative to make health care decisions for you if you can’t. You should have a Living Will to prevent unnecessary or unwanted life support. Either a durable power of attorney or a living trust should be in place to handle your affairs if you’re not able to.

4. No Guardians for Minor Children Named: Parents devote considerable time to providing for the needs of their children. But, these same parents often fail to appoint gua (more…)