5 Mistakes To Avoid In Estate Planning

10 October 2023

Estate planning is a vital process of wealth management that ensures your assets are distributed according to your wishes after your passing. It is a process that involves careful consideration, documentation, and, often, professional guidance.

While everyone’s estate planning needs are unique, there are common mistakes that can derail even the most well-intentioned efforts. To ensure you have a seamless process, our wealth management advisors at Whittier Trust have compiled a list of five common mistakes to avoid in estate planning.

Why Real Estate Planning Is Important?

Gone are the days when real estate planning was just a source of high net worth. Nowadays, everyone from a middle-class family to a luxurious background must come with efficient estate planning. It is true that there are various sources to invest your money. But the importance of property planning is truly unparalleled.

Estate strategizing is all about keeping your loved ones protected, at least from the IRS. Under the Internal Revenue Service, it is integral to transfer your assets to heirs with the aim of creating the least possible tax burden on them. The right estate plan also saves families from falling apart. Just like a will, estate planning helps you choose your assets and finances in the right way possible. Finally, it can be said that estate planning safeguards beneficiaries. If you are the sole breadwinner of the family, there is nothing to worry about, even if something happens to you. But for that, you will first have to curate a properly structured and evenly distributed estate plan.

What 5 Mistakes Must Be Avoided In Estate Planning?

It is good that you have come up with an exclusive strategy. But is that all to make things work? After all, you are risking your entire life’s savings in this endeavor. So, here I am listing down 5 mistakes that one must be devoid of at the time of estate planning:

1. Procrastination:

One of the most common estate planning mistakes is simply procrastinating. It is easy to put off creating a comprehensive estate plan, especially when you are focused on the present. Life can bring unexpected twists, and a thoughtfully crafted estate plan can offer you and your loved ones a comforting sense of security.

It is never too early to start estate planning, so regardless of age, taking action now ensures that your assets are protected, and your intentions are clear. A well-structured estate plan can alleviate the cloud of uncertainty about the future of your assets and the well-being of your loved ones.

2. Neglecting Regular Updates:

Estate planning is not a one-and-done process. Life is constantly changing, and your estate plan should reflect those changes. Failing to update your plan can lead to unintended consequences.

Major life events such as marriage, divorce, the birth of children, the acquisition of new assets, or changes in financial circumstances all warrant a review and, if necessary, an update to your estate plan. Without consistent evaluation, your assets may not be distributed as you intended. You update things like your phone, car, and closet without hesitation. Why neglect something as valuable to you and your family as your estate?

3. Inadequate Consideration of Taxes:

Failing to incorporate tax sensitivity into all areas of your wealth management strategy will inevitably diminish the impact of your estate and the eventual assets available for your intended beneficiaries.

Consulting with a knowledgeable wealth management advisor can help you navigate the complexities of tax planning and ensure that your estate is as tax-efficient as possible. It’s also important to consider what state you’re establishing trust in. For example, Nevada is one of the most trust-friendly states. It offers strong tax benefits, asset protection, trust longevity, and flexible decanting provisions.

4. Overlooking Beneficiary Designations:

Many assets, such as retirement accounts, life insurance policies, and bank accounts, allow you to designate beneficiaries. These designations supersede instructions in your trust. It is crucial to review and update these beneficiary designations regularly to ensure they align with your current intentions. Failing to do so can lead to unintended consequences, such as assets going to a former spouse or someone you no longer wish to benefit.

Oftentimes, emotions get roped into our decision-making processes, leading to impulse decisions or skewed perceptions. It is also important to think about the long-term effects of your beneficiary designations, considering every possible scenario. Having a third party like a wealth management firm help you with this process can prove to be extremely advantageous.

The third-party can either serve as your trustee or help advise the trustee to make objective decisions and look after the estate and family. In either scenario, a wealth management company helps create a neutral, mutually beneficial relationship in the estate planning process.

5. DIY Estate Planning:

Assembling a personalized wealth management team by handpicking lawyers, investment professionals, and other specialists may appear to offer a tailored approach to estate management. However, the effectiveness and cost-efficiency of this DIY approach are often outweighed by the advantages of partnering with a multifamily office.

While individual experts bring their own strengths, a multifamily office excels in curating a team personalized to your needs and capable of seamless collaboration, ensuring that your financial objectives are pursued with synergy and precision.

Multifamily offices are usually more cost-effective and time-saving as well, even providing family office services to help stay on top of the day-to-day expenses, documentation, and management for an estate. However, a good wealth management firm is also capable of working with outside experts, whether to account for a non-traditional area of need or comfort with a longtime and trusted source of counsel to prioritize your peace of mind.

Conclusion

Estate planning is a critical process that should not be overlooked or delayed. Avoiding common mistakes can help you create a robust estate plan that protects your assets and provides for your loved ones as you intend.

Trust services, like those provided at Whittier Trust, are committed to assisting individuals and families in developing comprehensive estate plans tailored to their specific needs and goals. You are not in this alone. The right wealth management advisors are ready to help you create and maintain an estate plan that is designed just for you.

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Selecting The Perfect Real Estate Agent Is Essential For Home Buyers

Buying your first home is an enormous achievement. And while exciting, the process can also feel overwhelming. You need a good realtor to help you. But wow do you ensure that you are working with the perfect real estate agent? When searching for a real estate agent, it’s important to remember that there are different types of agents with unique experiences and specialties. You should consider both your needs and wants, as well as the expertise of the person you’re working with. Here Are Four Prime Steps To Select The Perfect Real Estate Agent 1. Work With a Real Estate Agent Who Knows the Area When targeting a neighborhood, work with an agent who knows the area for the following essential insights: The time it takes to complete a purchase in the area. The market price for the home. If there is any way to improve your bargaining position. Any repair or maintenance concerns that you may miss. Take, for instance, families that want to move into the prestigious Toronto Cricket Club area. They usually partner with the best Cricket Club real estate agents like Adam Weiner + Associates because they have the knowledge and insights that help their client achieve their purchasing goals in the area. 2. Ask The Right Questions Take time out to interview the agent. Meet them in person if possible. Interview several agents and ask the right questions to zero in on the perfect one for your needs. Here are some questions you can ask: How well do you know the neighborhood? How are the schools in the area? What is this real estate market like? How much experience do you have? What type of customer service do you offer? What kind of real estate services do you provide? 3. Select A Reputable Realtor Trust is the basis of an excellent relationship with a real estate agent. Only a trustworthy real estate agent will represent your best interests and help you make an informed decision. To check a realtor’s reputation, look up their reviews on the Internet, and check their website for client feedback. Additionally, don’t be afraid to ask for referrals — happy clients will not hesitate to recommend a top real estate agent. Working with a reputable realtor will help you avoid fraud, such as title scams where fraudsters may sell someone else’s property. 4. Check Their Qualifications When you’re buying a home, there’s a significant amount of paperwork to complete. From the initial application to the final closing, there are dozens of documents that need to be signed and filed. An important advantage of working with a qualified agent is that they’ll help you with paperwork. A good real estate agent will help you with all the documentation. They’ll ensure that you have access to all of the right forms in advance, and they’ll also help you understand what’s required so that you don’t forget anything important or leave something out. They’ll also identify any potential red flags in the paperwork that may cause problems down the road. Whether you’re new to the home-buying process or have bought a home before, selecting the right real estate agent is critical. With the help of a top professional, you can avoid stressful mistakes and streamline the home purchasing process. Read Also: Mold Growth At Home: What You Should Know And What You Can Do Things First-Time Homebuyers Need To Know About Hiring Realtors 10 Best Ways To Find Cheap Homes To Flip

Commercial and Residential Construction: Key Differences

When it comes to construction, many business owners, who have faced residential projects before, are surprised at how different commercial projects are. The difference between commercial and residential construction approaches is big, starting from the volume of work and ending with regulations We’ve turned to the experts to list the key differences between commercial and residential construction. Knowing them is especially important when choosing general contractors and checking their portfolio, permits, and credentials. Commercial vs Residential Construction: Definition Before we go further, let’s define commercial and residential construction. When we are talking about commercial construction, we mean creating a building for commercial purposes. It could be a store, office, school, factory, storage facility, warehouse, and more. When it comes to residential construction, it involves building something for residential living, including houses, apartments, condominiums, etc. At first glance, it may seem as if the approaches to these two types of construction are similar. However, they vary substantially. There may be a certain crossover between the skills of commercial and residential construction experts. However, a company that focuses on commercial construction may not have what it takes to deal with residential projects and vice versa. Regulations and Permits According to construction experts from afsgeneralcontracting.com, the key differences between these two types of construction are codes, regulations, and permits. Any kind of construction project requires special permits to be completed. For commercial projects, the number of these permits and codes is much higher than for residential buildings. Safety codes pertaining to parking lots, elevators, fire safety, and more are different for commercial properties. General contractors must have extensive experience following these codes since failing to do so could result in the entire project being done in vain. Commercial buildings come with elaborate concerns for electricity, IT, and parking. That’s why the level of complexity for working with such properties is much higher. Building codes and standards don’t just vary from residential to construction projects. They can be different in each state or even city. That’s why it’s important to check whether the general contractor you’ve chosen has experience working in your area. Materials As soon as there is a building design in place, it’s important to identify materials needed for the construction project’s completion. Usually, materials required for commercial construction are drastically different from what you would purchase for a residential construction project. For example, an average residential building requires more wood since it uses a timber frame construction. Such an approach is considered to be cost-effective and well suited for buildings of smaller size. Even though some residential building owners prefer a steel frame for integrity, not too many agree. The reason is a much higher cost. Requirements for commercial construction project materials are stricter. The design is usually more complex than for residential needs. Timber framing often doesn’t cut it for large commercial buildings. Steel is the preferred material for companies building commercial properties. It’s resilient and allows for higher integrity and longevity of tall buildings. Obtaining large amounts of steel for framing requires an established relationship between a contractor and supplier. It may be easier for the residential owner to purchase timber directly from the vendor. However, in both cases, it’s better to rely on the contractor to find the right materials. Equipment and Training No matter how large and complex residential buildings can be, they are small and simple compared to some commercial projects. The large size of commercial buildings requires special equipment and workers’ experience. Operating tall cranes is different from working with aerial lifts. Meanwhile, the cost of such equipment, even if it’s rented, is much higher. Height-access equipment for commercial projects require specially trained operators. It’s also harder to find than aerial lifts for residential construction purposes. Some parts of residential construction projects are sometimes done by owners themselves or contractors using “How-to” videos. Even though it sounds questionable, these people often reach satisfactory results since the tasks aren’t hard. However, such an approach can never work for commercial projects. Mistakes that construction workers make with residential projects are much easier to fix than those occurring with commercial construction are. Meanwhile, commercial construction errors are likelier to result in a lawsuit. In most cases, residential construction workers need additional training to deal with commercial projects. Deadlines Commercial project deadlines are usually much stricter than their residential counterparts are. Higher construction costs and better-organized workflow usually mean that commercial construction tasks are executed much faster. For a company, a faster construction process means lower costs for labor and reduced financial investment. This motivates commercial construction workers to complete the project quicker. When it comes to residential projects, homeowners have a tougher time setting deadlines since they are prone to making changes. Meanwhile, some homeowners experience financial problems during the construction project, which may hinder deadlines. Residential construction projects require fewer workers than commercial construction does. This may also slow the process down. Costs The biggest difference between residential and commercial construction is cost. It doesn’t just stem from materials and compliance standards but depends on the costs of labor and equipment. The number of workers, as well as their experience and training, may reflect on the project costs tremendously. So can the use of specialized equipment, which is tougher to find and more expensive to rent. Residential projects require all of the above as well. However, due to their smaller scale, the costs go down proportionally. The approach to funding is different as well. For commercial projects, funding is found through bank financing, government agency or a wealthy owner/developer. Meanwhile, the homeowner usually funds a residential project through a loan. Final Thoughts Commercial and residential projects can be drastically different. The key differences between commercial and residential construction are materials, equipment, worker training, costs, and deadlines. When choosing a general contractor, the difference between the two is highly important since a company that deals with residential projects may not take up commercial construction tasks and vice versa. Read Also: Lifting and Rigging Equipment—Your Hardware Guide 3 New Age Engineering & Construction Technology All You Must Know About Construction Business Management Software

How External Cladding Can Transform Homes?

The facade of a home creates the first impression for a visitor. And for most homeowners, there really is quite no place like home. The comfort and privacy of the home is something that can never be replicated elsewhere. This is precisely why it is necessary to ensure that creature comforts and the luxury aspects of your home are not compromised in any way. Vinyl cladding and recladding is an effective way to give your home an absolutely stunning makeover. Here is what you need to know about transforming your homes in a cost-effective manner. Choose An Experienced Service Provider : It is absolutely necessary to choose the services of experienced cladding installers Melbourne. Pick an agency that is reputed, with extensive experience in cladding across all surfaces, including - fibro, weatherboards, corrugated iron, concrete, brick, and artificial brick. The experience of a service provider will reflect in the quality of the finish and time taken to complete the task. It is necessary to choose a service provider who has successfully completed projects, where homes were of different sizes and designs. By choosing a service provider with limited exposure, you run the risk of an improper finish and it is also possible that the outcome would be a lot different from your expectations. Insulation Effects : When you opt for vinyl cladding, you get the added benefit of insulation which offers great thermal effects. The option of choosing the extent of insulation rests with you as the boards typically come with a foam of either 20 mm or 30 mm thickness. This will also help to fight noise pollution in addition to thermal protection. Ensure that the design of the structure is taken into consideration when you choose the thickness of the insulation boards. Additionally, it is also possible for you to consider foil for improving the quality of insulation. Functional And Esthetic Benefits : Vinyl cladding comes with dual benefits. The first is the functional protection it affords to the home through superior thermal protection and reduction in noise levels. In other words, it means that the homes will be warm when it is cold outside and cooler when it is hot outside. This will help to keep the electricity bills low, while at the same time offering greater comfort naturally. In addition to the functional aspect, the boards improve the esthetics considerably. The right choice of color and finish can greatly transform a home, with a large number of homeowners choosing the boards for renovating old homes. When you choose a service provider, ensure that you pick one who has all the necessary equipment and resources to handle the installation of the boards. The quality of the boards needs to be your primary consideration. This will ensure that the boards retain the look for long, and are cost-effective. A distinct advantage of the boards is the fact that specific boards can be replaced if damaged. This is a great advantage that will prevent the need for pulling down an entire section of the wall to replace a damaged portion. Read Also : How Do Law Firms Help Companies With Their Real Estate Issues? How Real Estate Factors Into Business Decisions Top Tips For Flipping Homes

5 Mistakes To Avoid In Estate Planning

Why Real Estate Planning Is Important?