Estate planning is a difficult topic to discuss but you need to consider it even if you are young and healthy. There are a lot of issues that can arise without the proper Phoenix estate planning, and below are 5 of the most common estate planning mistakes to avoid:
1.) Avoiding the issue – even though you might be young and healthy no person can escape death, and setting up the proper Phoenix estate planning can ensure that your loved ones or family can properly handle your estate and personal affairs exactly as you want. It isn’t just about death either, there are many situations where you could be incapacitated, and having the proper estate planning can ensure that your wishes are respected in those situations as well.
2.) Not updating your Phoenix estate planning documents – after you have set up your Phoenix estate planning documents such as your will, trusts, medical power of attorney, etc. you will need to update them on at least an annual basis with the changes if your life such as marriage, birth, death, and other changes.
3.) Not gifting assets – Assets can be gifted to your family members up to $13,000 per year without any estate taxes, and if you are not doing this on an annual basis you may be subjecting your beneficiaries to extra taxes. Talk to a Phoenix estate planning on the proper process for gifting assets, but it should be a part of your estate distribution strategy.
4.) Not meeting with a Phoenix estate planning expert – estate planning is quite detailed and even those who have some knowledge of Phoenix estate planning should meet with an estate expert to go over their estate strategy and documents. A professional estate planner will know the ins and outs of the tax laws and can help you with complicated Phoenix estate planning scenarios.
5.) Picking the wrong executor – sometimes the best decision for an estate executor is not a close family member, but a trustworthy person outside of your family. When picking an executor during your Phoenix estate planning consider the person’s knowledge of estate issues, their general ability to handle legal affairs, and someone who might be able to step back from the emotionality of the situation and take care of the estate’s business as needed.
Need Help?
If you are not sure as to what legal document you currently have contact one of our professionals to help you with your planning needs. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.
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