Want to know the biggest mistake in estate planning? Here's what Vanguard says about it:
If someone asked you what the most common mistake is in estate planning, how would you answer? Surprisingly, the number-one mistake is simply not getting around to it at all.
The article also gives short thoughts on wills, your beneficiaries, your house and other real estate, incapacitation, a durable power of attorney and a medical power of attorney. I know, not exactly pick-me-up sort of reading. Nevertheless, it's a key part of financial planning, vital to protecting those you love, and essential if you want to pass along your assets upon your death.
FYI, Bankrate reports that 57% of consumers do not have a will. Furthermore, 69% of parents with children under the age of 18 are not prepared with a will.
Not a pretty picture.
The next three preventable mistakes in estate planning are as follows:
1. Preventable Mistake No.1: Naming minors as beneficiaries of life insurance policies, pension plans, etc.
2. Preventable Mistake No. 2: Not changing beneficiaries of IRA accounts, pensions, and Life Insurance policies after a divorce is final.
3. Preventable Mistake No. 3: Not naming appropriate persons as guardians for minor children, and failing to provide instructions for guardians.
Regards,
Mina N. Sirkin, Esq.
Posted by: Mina N. Sirkin, Esq. | December 26, 2007 at 01:04 AM
I have an uncle who has been married for 14 years. He is about to start recieveing roylaties from property he inherented from his father. He does not want to leave her the royalties after he dies. Is this possible in that he lives in Texas a common law state and has a will that givesa her 50% of his estate?
Posted by: William Herrera | August 05, 2008 at 12:39 PM