Common Estate Planning Mistakes

In the July 2012 edition of The Alabama Lawyer, attorney R. Mark Kirkpatrick of Coale, Dukes, Kirkpatrick & Crowley PC, highlights twelve common estate planning mistakes in Common Estate Planning Mistakes (p. 265). While each of these common mistakes should be considered closely, the first two listed are, in my opinion, the most common and can lead to major problems if they are not addressed.

1. Failing to have an estate plan at all (dying without a will)

2. Failing to have a comprehensive/coordinated plan

Overlooking these first two can be the foundation for all other mistakes listed by Kirkpatrick. The simple fact is that not having a comprehensive/coordinated estate plan that you, your family, and your attorney have all worked on and thought through, can put you at risk of making one or more of the mistakes listed below.

As I have said before, a proper estate plan will take time…and it will change over time. However, proactively spending time and money to make sure a plan is right for you and your family will ultimately save yourself and other family members from the pain of having to work with a bad plan or no plan at all.

3. Leaving assets to minors

4. Granting someone ownership, rather than power of attorney over an asset

5. Failing to use trusts to ensure that assets pass to whom you ultimately want them to go

6. Leaving assets outright to spouses, children or grandchildren who have creditor problems, disabilities, drug, alcohol or gambling problems, marital problems or who manage money poorly (spending problems)

7. Wasting the applicable credit of the first spouse to die

8. Leaving assets outright to a child who may have a taxable estate of is in a high-risk profession

9. Failing to plan for the liquidity needs of your estate

10. Failing to implement a gift-giving program (if you have a taxable estate)

11. Gifting the wrong assets

12. Failing to have a proper beneficiary designated for your retirement account

Source: Kirkpatrick, R. Mark. Common Estate-Planning Mistakes (July 2012). The Alabama Lawyer, Vol. 73, No. 4.




Birmingham Estate Planning Attorney Richard Burton provides legal services in Estates, Wills & Trusts, Probate Administration, Guardianship and Conservatorship, Asset Protection Planning, Business Succession Planning, Federal & State Tax Planning, Charitable Giving & Private Foundations. Contact Richard at www.attorneyrichardburton.com or call (205) 789-9894.