Sjoberg & Tebelius, P.A.
Serving Minnesota & Western Wisconsin

Avoid These Common Estate Planning Mistakes

Pug.jpgWhen it comes to estate planning, the biggest mistake anyone can make is to not create a plan at all. However, there are a few areas where people are often tripped up. Whether someone is creating the first version of their plan or they have had a plan in place for some time, they should keep these common mistakes in mind:

Choosing the wrong trustee/executor

Picking the right person to manage your estate is one of the most vital parts of estate planning. In some cases, a family member with a background in finance will fit the bill. However, keep family dynamics and interpersonal relationships in mind. In other cases, it may be better to hire a professional.

Not making regular updates to the plan

As we discussed in a previous post, important life events trigger a need to review and update your estate plan. Marriage, divorce, and the birth of children and grandchildren are essential times to ensure your will aligns with your wishes for your family.

"Selling" property to family members for cheap

For several decades, it was common practice to sell a piece of property to a family member or friend for $1 or some other nominal amount instead of gifting it through a will. However, this practice has serious tax implications. The IRS views these transactions as gifts, which are taxable if they are worth more than $14,000. Moreover, if someone buys a property for $1 and sells it for $1 million, they will have to pay taxes on the difference.

Failing to plan for the death of a beneficiary

It helps to think of this issue as a contingency plan. In the event something happens to one of your heirs, who should take their share? Depending on how the estate plan is set up, the original beneficiary's family can stand in their shoes, or their share can go to another recipient altogether. Without having the specifics laid out, an asset might fall to someone you never intended.

No Comments

Leave a comment
Comment Information
Client Testimonials

Client Testimonials

  1. “Thank you for providing personalized professional services to us during a time of grief and loss when family relationships were not the best. With an attorney on board to help manage legal matters, everyone had confidence that the best was being done. ”

    Read More…
  2. “Our estate plan was handled well. We never felt rushed and all details were fully explained. Sam is very professional, easy to talk to and experienced in all aspects of estate planning. He gave examples and explored alternatives for us to consider. Well done and thanks.”

    Read More…
  3. “I was given the name of the law firm by a family friend after helplessly pilfering through endless names on websites. I am grateful I called. I was connected with Dave Meier immediately and from the go, was treated with dignity, care and respect. Every visit to the firm was pleasant and professional. ”

    Read More…
  4. “We were highly impressed upon the level and capability of Sjoberg & Tebelius. They gently showed us that there was much more to achieving the Will in the correct format that will protect our children than the quick attempts we had made on our own. Great people to work with - achieving our desired results!”

    Read More…

Over 30-years of experience Serving Minnesota & Western Wisconsin

Sjoberg & Tebelius, P.A.

2145 Woodlane Drive
Suite 101
Woodbury, MN 55125

Toll Free: 888-892-7044
Phone: 651-315-8856
Fax: 651-738-0020
Map & Directions