The 7 Biggest Estate Planning Blunders

1. Never Finding Any Time — This is the first and biggest mistake people make — they never do any estate planning. Why? Are you really too busy or is it that you just don’t know how to get started? For most people, it’s trying to find all the answers by themselves. That’s impossible. Find out who can help you find the answers you need.
2. Not Having Any Plan — Many people leave things to chance because they think they’re not rich. It’s a mistake thinking the people you leave behind will automatically figure things out. In every family there are differences of opinion about money.

Problems can occur whenever someone else must try to interpret what you want done. If you don’t bother making an estate plan, the government will provide one by default. Their idea of what happens to your money leaves no room for your personal wishes, tax savings or charitable gifts.

Your personal estate plan lets you decide what happens to your money and everything else that is valuable to you. You need to learn how to give away all your stuff. You want to keep the government’s laws from doing it for you.

3. Paying Way Too Much Tax — The government has ways to make you pay taxes even after you’re gone. If you have a vacation property, a business, substantial investments, or even a registered investment plan, don’t think you can give these away tax-free. Over 50% of the value of these assets can be paid in income taxes.

An estate plan can give away your property and reduce or eliminate, taxes. Think how grateful your beneficiaries will be.

4. Not Making Your Will — If you fail to make a will, the government writes one for you. You have no say about who is in charge of your estate, who gets a share of your money, or how and when it is distributed. You also lose the chance to use any tax-reduction strategies.

Yet people die all the time without having a will. Why? Often, they
have no idea what is involved in making a will. Wills are the cornerstone to every estate plan.

Wills are legal documents that must pass certain legal tests. Judges are often called upon to interpret or declare homemade wills invalid. Don’t try to make a will by yourself.

Invest in a professionally prepared will to get peace of mind. Start your research by finding the right legal advisor.

5. Becoming a Target of Financial Abuse — Who can protect you and your money if you no longer can? Don’t think that your family, spouse, or children will automatically have access to your bank accounts to pay your bills.

Your estate plan must include power of attorney documents. You sign these written legal documents to designate someone as your agent to make financial and/or health decisions for you. You can choose who will control your money and make health-care decisions when you no longer can.

6. Not Dealing with Insurance, Business, and Charities — Missing an opportunity to deal with these items in an estate plan can be devastating.

There are certain tax-free advantages with insurance or businesses. Your estate plan should always consider these items to capitalize on tax benefits.

Donating to charity, religious, or public causes as part of your estate plan can reduce your income tax liabilities. Giving to charity can be rewarding in more ways than one.

7. Not Updating Your Plan — No estate plan will work if it is out of date. Learn why updates are necessary when changes occur including:

• a change in your personal relationships (marriage or divorce)
• new children, grandchildren, or stepchildren
• changes in your legal and moral obligations
• moving to another province, state or country

Are you interested in a consultation with Ed? Take advantage of Ed’s $375 meeting to discuss your needs. Set up a meeting.

Estate law is all I do.

Ed Olkovich