Taking the time to properly write your will and plan your estate will help to establish order and continuity in the event that you pass away or become incapable of making your own decisions. Our country’s tax laws can become very burdensome for your survivors, making activities such as estate planning both beneficial and necessary. The process of planning wills and estates can become very complex, making it very beneficial to work with your local estate planning attorneys. We receive calls on a regular basis that stems from mistakes made during the estate planning process that is now causing big problems.
As an experienced team of estate lawyers in Maryland, JDKatz is here to provide a comprehensive approach for your unique legal needs, whether they involve estate law, business structuring services, tax services, litigation, and more. We’re here to develop a personalized plan to best serve your situation.
Failing to properly implement and update your will or a trust may result in major issues after you pass. Today, we’ll highlight a few of the most common estate planning mistakes that plague modern Americans. If you are in need of professional help, be sure to reach out to our estate planning attorneys for assistance!
No Restrictions for Younger Beneficiaries
One major concern develops when a parent passes away and leaves their wealth to their young children. From the teenage years into young adulthood, leaving too much money to a child too soon can be a serious concern. Young beneficiaries who have suddenly acquired a large amount of wealth may not be able to responsibly manage this newfound responsibility. A few common concerns that come with this dilemma include:
- Substance abuse. Teenagers and young adults are at an age of experimentation, and handing certain individuals a lot of capital may cause them to turn to drugs or alcohol.
- Failing to thrive. Inheriting a large sum of money in high school or college may be enough motivation for your child to decide to drop out. When he or she is not able to see the big picture, leaving school and focusing on spending money or having fun may become the norm.
- Poor investment strategies. Proper money management can include responsible investing, but many young adults make the mistake of placing too much capital into one or two risky ventures. The temptation of gaining even more quick cash can be too much for some young people to resist.
- Little protection from scams. It is amazing how many fraudulent and downright dishonest schemes there are in this country, and certain individuals may be looking for a young adult with a lot of money for a big payday.
If you have a child or adolescent in your will or living trust, it’s important to remember to put measures in place to meter the rate of expenditure. Multiple statistical analyses have pointed out the roughly half of all inheritances are spent soon after the money is received. Being able to stretch out an inheritance can allow the young adults in your will to strive for their ambitions while also creating space for mature and responsible money practices.
Putting Off Estate Planning
For many Americans, procrastination with serious tasks is a surprisingly common phenomenon. More than half of the people surveyed in a recent poll stated that they have not gotten around to making an estate plan yet. Unfortunately for these people, estate law is complex and far-reaching, and includes issues revolving around tax liabilities and the probate process. Our estate planning attorneys are here to tell you that “the sooner, the better” could not be more true when planning for your estate. The sooner you begin planning for the succession of your estate, the better off everyone involved will be.
Estate planning is useful for creating your plan in case of death or disability. If something tragic were to happen that rendered you unable to make your own decisions, your loved ones may need to go through the legal processes to establish decision-making powers on your behalf.
When it comes to properly preparing your estate and assets, numerous tasks need to be taken care of proactively and accurately to minimize disruptions or costly setbacks. Next time, we’ll continue this topic by discussing a few more common mistakes that you should definitely avoid. If you are in need of a knowledgeable estate lawyer in Maryland, be sure to speak with JDKatz. Our Bethesda estate attorneys have the experience and dedication needed to help you plan for the future, providing your family with peace of mind. Contact us today to see how we can help.