A good rule of thumb in estate planning is to always be ready to change your plan should the unexpected happened. However, there are some areas of estate planning that can be easily overlooked because you might believe that they do not apply to you. Here are three of the most commonly overlooked estate planning issues that could lead to problems.
If you leave an inheritance directly to your children or other beneficiaries, that inheritance can fade away if the beneficiary is sued, goes into bankruptcy, or runs afoul of other legal difficulties. Consider creating an asset protection plan that will ensure the inheritance remains out of reach from subsequent creditors.
Review Your Living Trust
A revocable living trust is a very popular estate planning tool that many people use instead of, or in addition to, a last will and testament. However, you need to regularly review your living trust to ensure that you have properly transferred your property into the trust. If you fail to do this and a court later determines that you did not properly fund the trust, that property may have to pass under the terms of your will instead of in accordance with the trust terms.
Review for Clarity
It’s especially important to review all of your estate planning documents with your attorney periodically to make sure they mean what you intend them to mean. Terms such as “heirs” and even “children” or “issue” can sometimes be misconstrued, so it’s always best to tell your attorney what you want and then create a plan that protects your choices.