X
X

Find Your Specialist

X

Contact Us

    Go Back

    Common Estate Planning Mistakes (Part 1)

    Frazier & Deeter was recently recognized in an edition of “Estate Planning Experts” by Shane Smith, Esq. where the Head of the Tax Department, Terri Lawson, was asked to share her views on common mistakes she sees clients making when planning their estates. These were the three most common issues that Terri encounters while working with her clients:

    1. Not having a will

    The first and worst mistake you can make is not having a will. If you do not have a will, the state provides one for you. However, the state provided will could potentially distribute your property without regard to your family’s needs or your desires.

    2. Not updating your will

    Estate laws are always changing. People often think that once they have a will that they are done with the process, but new regulations can cause your will to be out-of-date. Also, families are always evolving: people get divorced, adopt children, children get married, children get divorced, etc. If you don’t keep your will updated to reflect changes in your family, your wishes may not be carried out.

    3. Lack of communication with your advisors

    Estate planning is an ongoing process that requires attention beyond simply finalizing a tax return. Tax advisors, attorneys and financial planners can work together to provide the knowledge and direction necessary to help you make the right moves with critical decisions like guardianships, trusts and charitable giving.

    Estate planning involves considering implications from a variety of angles and your advisors are there to answer questions like:

    • How is it going to affect your taxes?
    • Who pays the tax from this income?
    • Are you allowed to have access to the income?

    It’s best to communicate as questions arise and changes are made, rather than once a year.

    In order to avoid a mishap with your estate, be sure that you adhere to these three simple steps. By having a will, keeping it updated and communicating regularly with your financial advisors, you can make your estate planning comprehensive to make sure your wishes are carried out as smoothly as possible.

    About the Author:


    Terri Lawson is an expert in estate planning with over 20 years of experience helping individuals and families plan for the future, address concerns and meet their estate planning goals.

    Related Articles

    • 01.25.2023

      A New Year Means New Privacy Laws

      Ever since the General Data Protection Regulation (GDPR) came into effect in May 2018, US state privacy laws have been passed in Virginia, Colorado, Connecticut, Utah and, most pressing of them all, California. The California Privacy Rights Act (CPRA) went…

      Continue Reading
    • 01.19.2023

      The New Rules Under Section 174

      Internal Revenue Code Section 174 has long been used by taxpayers to deduct certain expenses related to research and experimentation (R&E) in the current year.  The code section was originally enacted in 1954 to eliminate uncertainty in the tax accounting…

      Continue Reading
    • 12.20.2022

      IRS Customer Service May Improve in 2023

      With 4,000 new customer service representatives and plans to hire 700 new Taxpayer Assistance Center (TAC) employees, taxpayers soon may get relief from endless hold times, no in-person help and unresolved problems.

      Continue Reading
    • 12.12.2022

      Reduce Taxable Income with IRA Distributions Transfers

      IRA owners who are age 70½ or over can transfer up to $100,000 per year to charity to reduce their taxable income. These transfers, known as qualified charitable distributions or QCDs, offer end-of-the year tax savings and can count toward required minimum distributions (RMDs) that taxpayers who are age 72 must make each year. Think of it as a tax-free charitable rollover of IRA funds.

      Continue Reading
    • 12.02.2022

      UK R&D Tax Reliefs – Where Are We Now?

      In the November 2022 Autumn Statement, the Chancellor announced significant changes to the current Research and Development (R&D) tax reliefs. The key announcements were a change to the applicable rate of the Research and Development Expenditure Credit (RDEC) and a…

      Continue Reading
    • 12.01.2022

      1099s Required for 2022 Tax Year

      Taxpayers earning income from selling goods or providing services may receive a Form 1099-K, Payment Card and Third-Party Network Transactions, for the first time in early 2023, when the 2022 forms are due. The requirement to file Forms 1099 have…

      Continue Reading
    • 11.28.2022

      IRS Uncovers $3.1 Billion in COVID Fraud

      The IRS Criminal Investigation department (IRS-CI) has partnered with the Justice Department to uncover and prosecute fraudulent activities related to the federal government’s COVID relief programs. To date, the IRS has conducted 840 investigations involving fraud amounts totaling more than…

      Continue Reading
    • 10.25.2022

      IRS Inflation Reduction Act Increases Funds

      The Inflation Reduction Act of 2022, enacted in August, increased funding for the IRS by $80 billion through 2031 for enforcement activities, operations support, systems modernization and taxpayer services. The legislative language, Treasury Secretary Janet Yellen and IRS Commissioner Charles…

      Continue Reading

    Privacy Overview

    When you use or access the Site, we use cookies, device identifiers, and similar technologies such as pixels, web beacons, and local storage to collect information about how you use the Site. We process the information collected through such technologies, which may include Personal Information, to help operate certain features of the Site (e.g., to prevent online poll participants from voting more than once), to enhance your experience through personalization, and to help us better understand the features of the Site that you and other users are most interested in.

    You can enable or disable our use of cookies per category.
    Always Enabled