Page 62 - Ultimate Guide to Estate Planning

Chapter 11. Most Common Mistakes

Probably the most common mistake is to use a

will rather than a revocable living trust.
Probably the second most common mistake is
to use the revocable living trust but distribute
wealth at ages 25, 30 and 35 as described
above.

Another common mistake is to pursue a cheap
alternative and totally avoid the opportunities
related to saving estate or income taxes, asset
protection, or financial maturity protection, for
the next generation.

Another common mistake is to ignore the asset
protection possibilities both for the person
creating the estate plan as well as the persons
who receive wealth from the estate plan. There

is a way to transfer wealth to the next
generations without having that wealth
exposed to the creditors of that generation. If
the inheritance is received by way of a
spendthrift trust, creditors do not have the

ability to compel distributions to satisfy their
claims. Creditors can include ex-spouses. As a

61