Misconceptions That Can Be Costly for Heirs

Should your estate plan cause you concern? Below are some common estate planning misconceptions that can lead to problems down the road, plus ways to avoid them.

1. “I already have a will.” A will does not improve with age. The passage of time presents unanticipated circumstances, such as changes in marital status, new children or grandchildren, revised tax laws, a move or fluctuations in assets. Revisit your will after major milestones or at least every couple of years.
2. “Everything is joint.” Joint ownership seems ideal because it avoids probate and expedites the survivor’s access. But joint title may also inflict unnecessary tax burdens and upset your estate plan. To sidestep title traps, consult with an estate planning attorney.
3. “I am single, so I do not need an estate plan.” But you may have siblings, children, grandchildren, other family members or good friends to consider. You may also want to remember the VFW in your plan. An organized estate plan is a gift to those you leave behind.
4. “My will covers everything.” Not necessarily. Jointly owned assets with rights of survivorship pass to the surviving owner regardless of what your will says. Plus, your retirement assets may never reach your intended loved ones if you have failed to update beneficiary designation forms. (Assets such as 401(k)s, IRAs and life insurance policies pass outside of your will or trust via beneficiary designations.) Complete new forms so old ones will not leave these assets to a deceased parent or former spouse.
   
   Note: If you would like to extend your support of the VFW beyond your lifetime, naming us as the beneficiary of your retirement plan can cut taxes on your family’s inheritance.
5. “My affairs are in good hands.” You may have a fine lawyer – but who is your executor or personal representative? This person should have the experience to gather assets, pay creditors, manage investments, file tax returns, satisfy legacies and account to your beneficiaries. If you create a trust, make sure you have named a trustee who can prudently manage the trust assets.
6. “I worry more about my heirs than myself.” A good estate plan should also reflect your current needs. Ask an attorney who specializes in estate planning about tools that can provide you income for life before supporting your family, friends and favorite causes.

We Can Help

Your estate plan provides a unique opportunity to provide for your loved ones and the VFW. Please contact the VFW Planned Giving Office at 816.968.1119 or plannedgiving@vfw.org to learn more about maximizing the impact of your plan.