You know, music and entertainment legends like Prince, Aretha Franklin, and Sherman Helmsley, among many others, died without leaving a will.
You don’t have to be rich or a pop culture figure to consider writing a will. It is something you should do as soon as possible.
Over 60% of Americans don’t have a will.
And don’t start believing that wills are something that only older people should worry about. About half of Americans over the age of 55 don’t have a will in place either.
It is important to have a will. Too many horrible things can happen to your surviving loved ones if you don’t have one.
And remember, you don’t have to be rich to need a will.
Did you know that over $50 billion dollars in unclaimed assets, monies, and properties are just waiting for people to claim them?
A lost inheritance, hefty tax return from a job in another state, or lost government payment could be issued after your passing. Without a will, a local probate court will decide how your assets are distributed among your family.
Now imagine estranged relatives, former friends, business associates, and creditors all suing for a slice of your posthumous windfall.
This is unlikely to happen to you, but never say never. It’s why we buy various kinds of insurance products.
Start making your estate planning strategies today. Make a will as soon as possible.
Before you do that, remember not to make these estate planning mistakes.
Worrying Excessively About Taxes
The only certain things in life are death, taxes, and stressing about taxes. However, chances are that you won’t worry too much about estate taxes in your lifetime.
Only 0.2% of the wealthiest American households have to worry about estate taxes. That amounts to only 2 out of every 1,000 Americans who die.
To qualify for estate taxes, you must make anywhere between $5.49 million to $11 million.
This doesn’t mean that you should NOT worry about property taxes or various other posthumous taxes against your estate.
It just means you should have as much focus on asset allocation among beneficiaries. Don’t get lost down the tax rabbit hole and neglect other pertinent issues.
Leave Everything to the Kids
That is a discussion you must have with your family. However, whatever is given can be taken away.
Of course, you will want to leave something to your children. But why not think about launching a charitable organization posthumously which your children can participate in.
Teach them the value of creating income instead of just giving them money they may not be responsible enough to handle.
Leaving Everything to the Estate Adviser
Facing your own mortality is hard. Looking over paperwork that will come into effect after your own death is a daunting task.
This process affects you and your family. Be involved in every step of the process.
Don’t leave it up to an estate adviser or a lawyer alone. Understand what is going on with your estate own planning.
Don’t exempt yourself from the process.
Any estate planning mistakes you are unaware of before your death won’t be exempted legally afterward.
Start Planning Today
I don’t like thinking about my own mortality. But I am not getting younger. I am not rich, yet I have begun researching my estate planning options.
Talk to a lawyer, estate planning expert, or financial adviser today.
Don’t let a probate court, or your estate planning mistakes, decide who in your family benefits from your estate.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.