Creating an Estate Plan to protect your legacy is a crucial step in the road to financial well-being and having a professional guide you through those steps is the best course of action. However if you are one of those "Do-it Yourself-er's" and plan to map out your own estate plan, here are 3 "Do Nots" to be aware of for going it alone on a home made estate plan:
- Do not put individuals other than yourself on the deed of your home. Most "do-it yourself planners" think putting others on their deeds will protect their home if they get sick or wind up falling ill. Doing this only it exposes you to their liabilities. If they get sued, have debt issues, get divorced, etc, the home is as much theirs as it is yours and could become an asset in jeopardy . Additionally, both you and your assigned individuals give up potential tax benefits should they actually inherit the house when you pass, rather than own the home outright.
- Do not name multiple people to be the power of attorney whether it’s for healthcare or financial power of attorney. Choosing more more than one person may cause disagreements among them that could effect your well-being. Disagreements could wind up in court where a judge would need to make decisions that may not be in your best interest. Exactly the situation you want to avoid by assigning only one power of attorney.
- Do not name children who are under the age of 18 as beneficiaries. Doing so could put them in jeopardy and force the court to appoint someone to manage the inherited money for them – very conservatively, until they turn 18. Secondly, they will receive the entire inheritance upon turning 18, an age where most that age aren’t mature enough to manage a windfall.
There is a right way to accomplish what you want in your will. Take the time to talk to an advisor or attorney who will help steer you in the right direction.
For more information check out this link:
Russ Nesevich is the Director of Estate Planning here at King Financial Network. Russ works directly with families to help them navigate solution that will help meet their needs. Russ mainly focuses on preserving wealth, minimizing estate taxes, and positioning clients to leave behind a legacy for future generations. Russ lives in Lumberton, NJ where he resides with his wife, Michelle and their three young children, Charlotte, Caroline, and Chip.
King Financial Network is an integrated, team-based network that takes a comprehensive, customized, and independent approach to guide you through Financial,Retirement,Tax, Insurance, and Estate Planning.
Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.