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Avoid These Common Estate Planning Errors to Protect Your Legacy Benjamin Franklin once famously said, “If you fail to plan, you are planning to fail.” This quote applies to nearly every aspect of our lives, but it becomes even more true when discussing estate planning. Many people believe their assets are too small or insignificant to require an estate plan, but this is just one common misconception about estate planning. Your estate plan allows you to plan and bring your desires and wishes to fruition. While there are many misconceptions and rumors about how estate plans work, there are also some common errors that people with estate plans often overlook. I’ve seen my fair share over the years. Here are two common mistakes that can derail your estate planning efforts. Failure to Designate a Contingent Beneficiary Not long ago, I was working with a client with no children. They were adamant that they didn’t want their assets going to their nieces, their only living relatives. However, their estate plan at the time stated that everything would go from one spouse to the other if one were to pass away before the other. They didn’t have a contingent beneficiary, which determines where the assets go when both spouses have passed. Since their nieces were next of kin, probate court would transfer any assets to them. We worked together to create an estate
HAPPILY EVER AFTER AND FINANCIALLY FIT MERGING MONEY AFTER 50 Are you tying the knot after 50? (Congratulations!) For older couples getting ready to walk down the aisle, there are unique financial considerations to take into account. Merging finances at this exciting stage involves retirement plans, adult children from previous relationships, and different priorities for the future. Get ready for the honeymoon phase as we explore how to merge marital finances in your 50s and beyond. Understanding Your Significant Other’s Spending At this point in your life, your financial habits and values are well established compared to 20-somethings still finding their financial footing. Being transparent about your income, savings, and spending with your partner is essential. You may even want to review each other’s credit reports. Discuss your hopes for retirement and what it will take to get there. You may be more set in your money mannerisms, so it will take planning to reach your shared lifetime goals. Combining Accounts Newlyweds who are 50-plus must decide if they will merge their accounts fully or maintain separate ones. At this age, you likely have more assets to consider. Maybe you’ll keep individual bank accounts and create a joint account for shared expenses like bills. Reviewing your estate plans together is essential to ensure your wishes for wealth distribution to heirs are clear. Embarking on this new chapter means more than just sharing a life — it’s about blending finances in a way that makes sense for both of you. Communicating about your finances and shared goals ensures your golden years together are filled with financial harmony and peace of mind.
plan that ensured their assets would go where they wanted. Designating a contingent beneficiary is an integral part of estate planning that often goes unnoticed.
Not Understanding What Becomes Public Information
Would you say that you live a private life? Unless you’re a professional athlete or aiming for a position in politics, you likely answered yes to that question. However, if you don’t
have an estate plan when you pass away, your assets will go through probate court, where it is determined who will gain possession of them. Just like that, all of your assets just became public information. You must have a foolproof estate plan to keep your life, assets, and possessions private.
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For more common errors, be sure to check out page three!
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