You have finally signed your wills, trusts, powers of attorney, and took a sigh of relief that your estate plans are finally in order. But are you finished for good, or did you only take an important step in a longer process? For several days we’ve counted down the top 10 Estate Planning Mistakes, and today we get to the top mistake that can occur even in the best laid estate plans.
Number 1…Not coordinating beneficiary designations with your will or trust.
You want to leave your estate equally to your four children. If your IRA names one of your children as the primary beneficiary, or if your bank account is titled jointly with another child, that child may inherit that asset and thwart your plans. If you plan to leave assets in trust for a beneficiary, but name that person as a beneficiary for an IRA, life insurance policy or other asset, then that person may be able to obtain those assets outright.