New Year’s Resolution?Make Sure You Have a Sound, Up-to-Date Estate Plan

What are the most common estate planning mistakes

On January 1st, many people resolve, finally, to address their estate plans and what will become of their assets when they pass to the next generation. Experts agree that the worst plan of all is to do nothing. The last thing anyone wants is for the government to end up as the main recipient of the proceeds from a lifetime of hard work.

Experts generally advise against using do-it-yourself online forms. The laws of each state differ and change frequently. Online services may not fully reflect current Maryland tax or trust and estates laws.

If you are just beginning, you need to make sure you have several documents

A will;
A financial power of attorney enabling someone to act on your behalf; and
A health care directive enabling someone to make health care decisions for you.

With advice from counsel, you may also wish to create a trust for some of your wealth.

To avoid misunderstandings later, your will should be clear and specific, mentioning not just your investments but also personal possessions. You should discuss your plans with your children. You also need to revisit your plans from time to time to make sure they reflect your current circumstances and wishes.

Here are several other common mistakes that Baltimore-area estate planners see all too often.

The wrong titles on documents. You may have extensive records on your home, IRA, life insurance policy and other assets, but if they are mislabeled, they are of little help to those trying to settle your affairs.

Out-of-date beneficiary designations. Some designations are made when you create a new retirement account or insurance policy and may be years or decades old.

Incorrect names and percentages that do not add up to 100.

While not always insurmountable, these errors can add costs and delays to the resolution of your estate.

If you would like to create or update your estate plan in 2015, the estate planning lawyers at Longman & Van Grack can help. Our skilled attorneys have years of experience dealing not just with the tax planning issues involved but also with the personal decisions involved in providing for your loved ones. If you would like to discuss the best way to structure your estate to ensure that your spouse, children and future generations receive all that they should, contact us at (301) 291-5027 for a consultation.