Mistakes to avoid when creating an estate plan

On Behalf of | May 20, 2019 | Blog

While estate planning is important for all adults in Nevada, it is critical to do so properly. A common mistake that people make is to leave assets directly to minors. A better idea is to leave the asset to a trust that a minor child or grandchild is the beneficiary of. If a trust is created, it needs to be funded before its creator passes on. Otherwise, assets that were intended for the trust may still need to go though probate.

Individuals are also advised to not create a will without the assistance of an attorney or an estate planning professional. Although it may be less expensive to make a will online, DIY documents are often vague or otherwise hard to decipher. Therefore, the money saved creating the document is likely going to be spent on lawyers and other costs related to determining what it’s trying to say after a person passes.

While a person may be tempted to name his or her oldest child as a trustee or estate executor, this isn’t always the best idea. When naming a trustee or an executor, the best person for the job should be the one appointed to do it. This may mean asking a younger child or another trusted person to do so.

Ideally, an individual goes through the will planning process with the help of an attorney. Doing so may ensure that the will’s language is clear and accurately reflects the creator’s intent. It is also a good idea to review other parts of an estate plan on a regular basis to account for life changes. Legal counsel may be able to assist with making changes to a will, trust or other component to an estate plan.