Though many Michigan residents like to have plans in place for various scenarios, they may not always understand certain aspects of certain plans. For instances, many individuals may think that estate planning is useful, but they may not be fully utilizing those plans effectively. Mistakes are not uncommon when it comes to this type of preparation, and therefore, parties may wish to be on the lookout for possible errors.
One error that could put a significant kink in a plan involves trust attachments. A schedule is an attachment for a trust that lists an inventory of the items that have been placed into the trust. A major mistake that some people could make is to leave the schedule blank or incomplete. This error could result in confusion or a trust not being properly funded.
Individuals may also want to ensure that their beneficiary designations have been properly created. Because many bank accounts allow for payable on death or transfer on death designations, parties may wish to take advantage of these designations. They can name beneficiaries to those accounts and the funds will go to those beneficiaries in the appropriate manner. If individuals do not make these designations or do not update them, complications could ensue.
The idea of making mistakes may put some people off the idea of even creating a plan. However, not having any type of estate plan can cause issues of its own. Therefore, interested Michigan residents may wish to speak with experienced estate planning attorneys who could help ensure that all documents are completed correctly and generally lessen the likelihood of errors.
Source: kiplinger.com, “Some of the Biggest Estate-Planning Mistakes People Make“, Andrew McNair, May 25, 2017