Art of the Smart

Wills, Trusts, and Paperwork

Categories: [finance]
Tags: [learn-from-my-mistakes]

Todays lesson is about when loved ones die and making sure you have the paperwork in order. I'm sure you're already aware of the most important advice, which is to have a will or living trust set up if you think you might kick the bucket anytime soon.

You can get that from a lawyer, but I would also recommend that you consult a tax advisor and financial planner, too. They'll help you make sure everyone's in the right place if that should happen, and mistakes there can cost you a lot, as in:

• Taxes because of special assessments or (as in California) a Prop 13 reassessment.
• Time and headaches because some institutions like banks will only talk to the courts or a very specific legal person.

One of the things I wanted to use this new website for is to start cataloging the things I learn for myself and for others. If you can learn from my mistakes, so much the better. In our case, we missed a $10 filing that caused some serious repercussions and tax assessments that could have been avoided.

Learn from my mistakes: Make sure you know- in advance- how the assets, accounts, and liabilities of those you live will be turned down.