4 Estate Planning Mistakes to Avoid
Unfortunately, when it comes to estate planning, there are numerous pitfalls that people often encounter. In this video, Bryan Devore is joined by Brenda Geiger from the Law Office of Brenda Geiger to shed light on some of the most significant mistakes in estate planning and how to steer clear of them. Bryan and Brenda highlight the evolving nature of estate planning, marked by changes in laws and increasing complexity. Watch the video below or listen to the podcast episode.
Mistake #1: Planning Around Specific Assets
One common mistake addressed is the tendency for seniors and retirees to plan around specific assets without comprehensive estate planning. She shares a real-life example of a father attempting to distribute assets among his three children, inadvertently creating complications when life circumstances changed. Brenda emphasizes the importance of considering the broader context and consulting with an estate planning professional to ensure a more holistic approach.
Mistake #2: Attempting to Avoid Probate in the Wrong Way
Another significant mistake Brenda discusses is the misunderstanding of probate and attempts to avoid it by putting someone on the title. She details the potential issues, such as gift tax implications, creditor problems, and capital gains issues, urging planners to seek professional guidance rather than making decisions that may lead to unintended consequences.
Mistake #3: Failure to Fund Your Living Trust
Brenda underscores the importance of funding a living trust correctly. She shares a poignant example of a client who only included their home in the trust, leading to a lengthy and unnecessary probate process for other assets. This highlights the critical need for seniors and retirees to comprehensively fund their living trusts to avoid such complications.
Mistake #4: Planning for Problem Children
Addressing beneficiaries with unique circumstances, Brenda discusses the importance of planning for “problem children.” Whether dealing with addiction or immaturity, she advocates for the use of continuing trusts to protect beneficiaries from potential pitfalls and external influences.
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We connect San Diego with the people and organizations that are making a difference. Bryan Devore is the Director of the Senior Division of Berkshire Hathaway HomeServices California Properties. Holding the Seniors Real Estate Specialist designation, Bryan specializes in creating solutions for the real estate needs of seniors throughout San Diego County.
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Originally published February 19, 2024
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