If you’re a parent or grandparent in Tennessee, you’ve probably thought about creating an estate plan. Doing so can help to ensure that the next generations in your family benefit from the wealth you’ve accumulated. It’s important to get started, but it’s also crucial to proceed carefully so that you can avoid making the most common estate planning mistakes.
Don’t forget to keep your designated beneficiaries up to date
One of the most essential aspects of estate planning is making sure that all the designated beneficiaries on your financial accounts are listed correctly. Many people often overlook this important step when planning their estates since it doesn’t involve a will. Many people don’t realize that by designating beneficiaries, assets go directly to those individuals without the need to go through probate court.
Don’t list minors as beneficiaries on a will
Most people who list minors in their wills do so because they are optimistic. After all, those minors will have long since graduated from college by the time anyone reads the will, right? Everyone hopes that is the case, but if it’s not, the surviving family will be left with a very complicated inheritance to manage. A better choice for minor children is to set up a trust fund.
Don’t forget to fund a trust
Setting up a trust is one thing, and funding a trust is another. Believe it or not, a lot of people who have set up trust funds never actually get around to putting assets in them. When this is the case, an estate could end up being unnecessarily eaten up by probate fees. If you have a trust that you are unsure of how to fund, or you have other estate planning questions, an attorney with experience with wills and estates may be able to help.