Since estate planning entails thinking about death, many individuals put it off until their senior years (or when it’s too late). For the loved ones, the belongings one leaves behind, can cause misery, complexities and mess amongst the family and this is why one requires wills and estate lawyers in Melbourne.
Although the greatest blunder one can make is not consulting the lawyers and strategising the estate plan, that does nothing but invite issues, if there’s no understanding on how estate plans work. Here are some of the most common errors that individuals create in estate planning:
Not updating designations of beneficiaries
Sometimes, individuals fail to change their beneficiary designations to suit their wishes for estate planning. In order to find out who will obtain those assets in the event of death, consult with a life insurance provider and retirement account holders.
For trust basis, involve a beneficiary’s trust. This does not happen automatically after a trust is established. You have to make the change.
Not financing your trust
Many people believe that just listing the asset in a trust guarantees the distribution. But this belief is unreal. Any properties should be “funded” to the trust, such as real estate, bank accounts, shares, brokerage accounts, in order for them to be actually transferred without having to go to court. Funding means changing the name to list the trust as the owner on the title of the property or account.
Sadly, most lawyers have been trained to establish a trust, but not to ensure that the assets are genuinely transferred to the trust. And of course, after the trust is established, it requires one to acquire new assets, ensuring that the assets are also titled in the name of trust. Many attorneys, however, are not qualified to ensure that this happens either.
Not forming a will
Though wills are not the sole method for estate planning, they are one of the bare minimum standards. Will allows you to identify who, upon your death, will inherit your land, and it also allows one to appoint unique guardians for the minor children. The property is divided without a will on the basis of the intestate laws of the state (which are presumably not in accordance with the wishes), and a judge will appoint a guardian for the children under 18.
Not examining records/documents
Estate plans are not a contract of ‘one-and-done.’ As time passes, the conditions of life change, the rules change, and even the assets change. In view of this, if one wants it to really succeed in terms with the loved ones, keeping them out of court and out of conflict, is the type of strategy you should work upon when representing these changes.
To ensure that the terms are up to date, it is recommended to review the plan annually. And make sure to amend your estate plan immediately after significant life events such as divorce, births, deaths, and inheritances.
In preparation of will and assets, there are a variety of issues that may arise if the best lawyers in Melbourne are not consulted. Failure to correctly resolve certain related problems and risk factors will lead to important time and expense issues for those left behind after you pass.
To help one navigate these topics, it is always recommended to take legal advice from the best litigation lawyers in Melbourne. In case of confusion, ‘legal fine print’ at any time or want to explain particular things, call Velos & Velos Lawyers today!