If you haven’t already done your estate plan, perhaps hearing a few horror stories about people who made common mistakes will prompt you to do it — and do it right.
An article in the Green Bay Press Gazette, recounts a few cases that detail classic mistakes involving estate planning, or the lack of it.
- A former Supreme Court justice wrote his own will, using just 176 words. It cost his family $450,000 in estate taxes and court fees because he didn’t take the time to do it right.
- A young woman left her assets to her minor son. When she died, she had $1 million in her estate due to a wrongful death claim. Her son died soon afterwards and the money went to his only heir, his father, who was a drug addict.
- A father had a stroke and had to go into a nursing home. His children closed his bank account but never went through his mail. After he died, they found a statement for a $1 million life insurance policy. But the premiums had not been paid since the bank account was closed. They didn’t get the money.
Lesson: Know what you know, know what you don’t know.
Lesson: She could have put the assets into trust with a contingency plan were he to die, so the money could not go to the father.
Lesson: Make sure somebody knows what assets you have, usually the person who has power of attorney, a trustee named in a trust you have set up or the personal representative named in your will.
These are common mistakes that can be avoided if you engage a qualified estate planning attorney to help you with your estate plan.
I really appreciate this post. It is really nice to hear “horror stories” that offer learning. It’s good that you show examples of mistakes that warn people before committing the same errors especially on estate planning.