Yesterday, Emily Humphreys-Beher, Trust Officer with Community Bank & Trust of Florida, let us know why we all need estate plans.
Today, we'll cover some common mistakes.
I see that you’re based out of Florida. How important is it to have local assistance with estate planning?
I’m not a big fan of do-it-yourself documents. Some states (such as Florida) have different requirements for signatures and witnesses, and you always want to cite state law in your documents. You can find attorneys that have estate planning packages (a Will, Power-of-Attorney, Living Will and Healthcare Surrogate documents) at fairly reasonable prices. Sometimes you pay a little, but get a lot in return. Professionals may ask questions that make you think in a new way about your options.
I'm not a fan of do-it-yourself documents either. For one thing, I'm lazy. For another, I'm certainly no expert in the law.
What is the number one mistake you see with estate plans?
Failure to plan at all. If you have no plan, the state has one for you! The second most common mistake I see is in naming beneficiaries of life insurance and retirement plans. If you get divorced or remarry, especially, you need to take a look at these documents and make changes. Don’t overlook the contingent beneficiary, especially if you are married and you and your spouse often travel together.
Great tip about the contingent beneficiary. That's a must for the hubby and I as we travel often and usually together.
Tomorrow we'll talk about special considerations for female business owners and investors.