For this reason, EstatePlanningStrategists.com hopes to educate clientele by listing the most frequent mistakes of Estate Planning and providing specific case examples on what should watch be avoided.
The most frequent mistakes that can prove to be costly in estate planning include:

1. Not checking beneficiary designation and making sure you have named contingent backup beneficiaries.
2. Not considering that some of your certain personal possessions may have more than monetary value to your children.
3. Not naming backup executors and trustees.
4. Working with an estate planner who does not take the time to make sure the ownership of your accounts and beneficiary designations are properly coordinated.
5. Leaving your family to conduct a scavenger hunt by not leaving written documention of your assets, including online accounts and passwords (Dagmar M. Pollex, JD, 9-28-13; See also, Your Estate Planning Agenda, Bob Carlson, 8-7-13).

Beware of asset protection claims by designating someone else as the Grantor

Con artists have been known to exploit people by providing them with false information. Beware of people who maintain that by designating someone else as a Grantor/Settlor of your trust you can obtain significant tax avoidance and liability protection. The truth of the matter is that the exact opposite is true. Designating some else as the Grantor/Settler of you trust can actually result in a very costly and negative result (Schulz v. C.I.R.,  686 F.2d 490 (7th Cir. 1982); United States v. Buttorjf, 761 F.2d  1056 (5th Cir.  1985); Neely v. United States, 775 F.2d  1092 (9th Cir.  1985); Loring and Rounds:  A Trustee’s Handbook, Section 8.43, 2013).

Be aware of when liability occurs for asset protection purposes

When a California resident created a domestic protection trust in Nevada, the California Court of Appeals found the defendant guilty of fraudulent transfer even though the trust was created several years prior to the litigation giving rise to the judgement. The California Court of Appeals’ final rule was that even though the defendant transferred most of his assets to a trust that was created in 2004 and the lawsuit had not commenced until 2008, the event that was the catalyst for liability occurred in 2000. (Kilker v. Stillman, 2012 WL 5902348 (Cal. App. 4 Dist,  11-25-12).

Be sure the contractual document is specific when making charitable gift.

When donors made a $375,175 donation intended to go to the McFarlen Library in Grand      Blanc they neglected to specify in writing exactly how the donation was to be used. As a result, the money is still sitting untouched because the Genesee District Library and local elected officials cannot agree on how to spend the money. Moreover, both sides have already spent $10,000 in lawyer fees, an amount that will only increase if the dispute ends up in court. Had the donors specified exactly how this money was intended to be spent, such conflict would not have occurred ([email protected], by Dana DeFever, 9-8-13).

In another case, Reed Foundation officers made a $2.5 million contribution to aid and develop the Franklin D. Roosevelt Four Freedoms Park in New York. In exchange, officers of the Reed Foundation agreed to have their names carved in stone text, recognizing their contribution. The recipients, however, informed donors that, contrary to their agreement, their names would be included with a list of other donors. The courts ruled in favour of the plaintiffs, claiming the recipients could not change the terms of their written contract (Reed Foundation, Inc. v. Franklin D. Roosevelt Four Freedoms Park, LLC, 2013 NY Slip Op. 3191).
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EstatePlanningSpecialists.com specializes in aiding its clientele in all areas of estate planning, by  providing informed guidance and warnings in all areas of wealth preservation, asset protection, and estate and gift tax planning services. For more comprehensive information on estate planning, contact an estate planning lawyer or an asset preservation specialist at 989-539-3996, [email protected], or

Casper P. Connolly & Associates
Central Michigan Office
301 S. Rodgers Ave.
Harrison, Michigan  48625   USA
989-539-3825 or 989-539-3996