Avoid These Simple but Costly Estate Planning Errors

Dunlap Law Insights

Wanting to do what is best for one’s family is not always easy. Some Minnesota residents may think that they have done the right thing by creating an estate plan for their loved ones to follow, but too many people make errors while estate planning. As a result, families may not have as smooth a probate process as a loved one may have intended.

One issue that some people may overlook is the expenses that can come along with closing an estate. Some parties may think that since their estate is not large enough to owe federal estate taxes that their loved ones will not have to worry about that type of issue later. This idea could even result in some people forgoing estate planning altogether. However, state estate taxes could still apply as well as probate costs, so planning can still be useful even if federal estate taxes are not an issue.

Additionally, it is important for individuals to update their estate plans if they move. Creating a plan in one state does not guarantee that surviving loved ones can use it if the person moved to another state. Laws regarding estate plans and their validity are not the same in all areas, so reviewing plans after a move is prudent.

Some estate planning errors may seem small, but they can have substantial effects on surviving loved ones. The estate may not be worth as much as a family thought due to probate fees and taxes that were not planned for, or a plan may not be useful at all because it is not valid under Minnesota state law. As a result, it may be wise for individuals to go over their plans with knowledgeable attorneys who can look out for such mistakes.