Planning for the future is important for all Florida adults, but it is crucial to consider the implications of these decisions. Even a minor mistake with an estate plan can lead to serious complications for beneficiaries and heirs in the future. Fortunately, a few simple steps and a careful review of existing plans can help one avoid issues and make it easier to distribute wealth and assets later.
One mistake people often make with their estate plan is failing to make sure their beneficiaries are accurate. Adding beneficiaries is important, but it is also crucial to update these designations when necessary. For example, marriage or a divorce may merit a change in some plans. This allows account assets to go directly to that individual instead of going through probate.
It is also crucial to avoid naming a minor as a beneficiary. Instead, it may be more appropriate to establish and fund a trust. A trust is a tool that allows one to set aside and protect assets for a specific use in the future. Every estate planning decision can have tax consequences, and it is critical to consider the long-term implications that certain choices can have for beneficiaries.
When making estate planning decisions, it is important to work with an experienced attorney. Even simple mistakes can lead to difficulties and complications in the future, but it is possible to avoid these and have confidence in planning decisions. An assessment of an existing estate plan can help a Florida adult understand what mistakes he or she should correct.