By Dale Gribow
The following is an overview of the mistakes most people make with respect to their estate planning. Initially most people procrastinate and do not address the issue of having an Estate Plan. This is consistent with the phrase I have used in several prior articles and is also the phrase I would use to open my legal radio shows… ”People don’t plan to fail… they fail to plan.” Obviously this is the first rule to consider.
Many people still believe that a will protects your estate from Probate. The truth is that it does not eliminate probate and you do not need a lawyer to prepare a will… but it is advisable. You can prepare a Holographic Will by writing it out in your own handwriting… it is legal. But note that nothing else can be on the paper. It cannot be on hotel or business stationary nor can it be witnessed etc. You must sign and date it and state that it is meant to be your last will. This is referred to as “Testamentary Intent”. Stating this is my Last Will and Testament dated 6-26-13 is advisable.
Some people think it is a good idea to own their assets jointly with their children or spouse. Most lawyers would disagree in many instances. Thus you should have a lawyer assist you when deciding how to own your assets.
Most people do not realize that having a Living Trust will assist you in Avoiding Probate. Probate can take a long time to resolve and it is a public document so anyone can look into your private finances as set forth in the Probate Proceeding.
Relying on a Do It Yourself Trust is also a mistake as is using a company that will provide you with a fill in the blank trust form. One form can never address every issue and a lawyer should review your factual scenario to determine what is in your best interest.
A trust is a good thing for most people but many people with a trust forget to fund the trust by transferring assets into the trust. You want to put your home in the trust or buy life insurance to pay the estate taxes. Legal advice can be invaluable in these circumstances.
The average person pays to much in estate taxes and probate attorney fees. These can often be eliminated or reduced by having a trust. Whether a trust is right for you involves your calling a lawyer for guidance.
Once you address estate planning you must appoint your power of attorney. Many people fail to do so. You should also consider an alternative in case the first party is not available on your demise.
Once you have an Estate Plan you need to review it regularly with your attorney to be sure it is up to date and compliant with new laws that may have come into effect.
If you have any questions regarding this column or ideas for future columns please contact Dale Gribow Attorney at Law at our NEW number 760 837 7500 and or our new email of dale@dalegribowlaw.com
