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Friday, March 11, 2011

Estate Planning - 7 Common Mistakes in Estate Planning


While planning your estate is not a pleasant work, it is necessary to efficiently and successfully able to transfer all the assets that are left behind. With some careful planning, your heirs can avoid paying estate taxes and federal taxes on their assets. In addition, a well planned estate avoids the confusion of their loved ones.

Still, with all the advantages of estate planning, many people make a large number of errors in the process. The most common mistake when it comes to estate planning is not moving to solve the problem.

Make sure you take the time to plan at least the financial part of the heritage, so your loved ones are left with a certain amount of security. The following seven mistakes often become a big trouble for families after a loved one passes.

1. Do not fall into the trap of thinking that estate planning is only for the rich. 
This is totally false as your estate planning is essential for anyone who has any amount of assets they leave behind. Many people do not realize that his state is as big as it really is, especially when they do not take into account the assets of their home.

2. Remember to update your will and review it at least once every two years. 
Factors that may change the information on their beneficiaries include deaths, divorce, birth and adoption. As family structure changes so does the change of the assets that you want to leave.

3. Do not assume that taxes paid by your assets are written in stone. 
Talk to your financial adviser about ways that your beneficiaries can avoid paying taxes on their assets. There are several tax planning strategies to use so that you can minimize taxes or avoid them altogether.

4. All financial documents must be in order to make it easy for someone to find them. 
Make sure one of your loved ones have information on where to find the documents necessary for planning after your death.

5. Do not leave everything to your partner. 
Leaving all the property to the spouse is in reality sacrificing their share of profit. You'll get a tax credit to equity, but will lose some of this if your spouse is the sole beneficiary.

6. Make sure your children are well planned. 
Many people take much time to decide what to do with their property and they forget they have to designate the custody of their children. There are many details to consider when it comes to protection.

7. If you do not have a financial advisor, get one. 
Financial planners and advisers are trained closely on these issues and can provide asset protection well above the fees that they charge. If you need help choosing the right financial adviser, obtain a good one from a Financial Advisor Report.

The above errors are common when people are planning their estate. Take time to plan your death even though you might have years to live before death becomes a problem. The key to estate planning is to be prepared. 

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