Surety Bonds

Avoid These 3 Mistakes of Estate Planning


The majority of estate planning fails usually fall into one of several groups. Though each estate plan is distinctive, the same errors and snags can arise. Each of these typical mistakes is preventable with a little familiarity of what to be aware of.

Not revising asset ownership. Your assets may be owned by you as well as your spouse, children, or other individuals. However, it is important to review if these beneficiary designations still meet your needs. Has anything transformed in the last few years regarding the law, your current situation, your relationships, or any other factor that would compel you to transfer ownership of your assets? Review your current plan to see if it needs tweaking.

Not organizing retirement plans and trust. This point similar to the last, as myriad people usually select their living trusts or various other trusts as beneficiaries of their retirement plans. Of course, there can be decent motives to nominate a trust as an IRA or other retirement plan beneficiary. However, due to IRS regulations, choosing the incorrect type of trust as an IRA beneficiary can actually accelerate taxes. Hence, be sure any trusts you qualify as beneficiaries meet your goals.

Not updating your plan. If there has been a major change in your family, such as a death, birth, marriage, or divorce, job status, your net worth, residential location, etc., this should trigger a serious review of your plan. This will help make sure your assets are bestowed to the right loved ones.

A person appointed as a personal representative, executor, or administrator could be required to purchase an estate bond. Estate bonds are also known as administrator bonds, probate bonds, personal representative bonds, or executor bonds. The court requires this bond to safeguard the estate’s beneficiaries in accordance with state law. These requirements vary from state to state our county where the decedent lived at the time of their death.

Colonial Surety offers an easy way to obtain estate surety bonds. Quote, apply, and purchase directly from the insurance company today. Learn More