Below are some examples of estate planning and trust administration decisions that are relatively common, and the possible unintended consequences.
(10) Arranging for the complete disposition of assets in a nonprobate manner by using “multiparty accounts,” leaving the executor with no funds to pay debts, taxes, and expenses after death. This may be the most common mistake on the list, and the most difficult to clear up. Also, this method usually fails to take into account changing asset values over time.
I had a much longer list to start, but ran out of time to discuss them all, so these are just some common examples. Each estate and family is different and presents unique issues. You want an estate plan that is customized and planned for you. Not all probate litigation can be prevented, of course, but a large portion of probate litigation can be prevented by good planning and hiring experts during the planning, trust administration and probate phases.
Posted by Henry (Hank) J. Moravec, III, a partner at Moravec, Varga & Mooney. For a complimentary 30 minute consultation (telephonic or in person), you can e-mail Hank Moravec at firstname.lastname@example.org or call him at (626) 793-3210 or (818) 769-4221.
He focuses his practice on Estate Planning, Trust and Probate Administration, Beneficiary and Trustee Representation, Probate Litigation, Tax Law, and Nonprofit Law. He represents clients throughout Southern California and his offices are conveniently located for clients in the Los Angeles, Orange, Santa Barbara, Riverside and San Bernardino Counties.
The San Gabriel Valley office is located at 2233 Huntington Drive, Suite 17, San Marino, California 91108. Telephone: (626) 793-3210.The San Fernando Valley office is located at 4605 Lankershim Boulevard, Suite 718, North Hollywood, California 91602-1878. Telephone: (818) 769-4221.