Problems With Traditional Estate Planning

Most of us are familiar with conventional age-old estate planning tools, such as just a will and a power of attorney. You have probably used one or more of these techniques. But there are many disadvantages. Each of these drawbacks contradicts the definition of wise and Proper Estate Planning. If you are considering one of these options, take a look at some of the pitfalls involved.

Do You Need More Than Just A Will?

To determine the type of estate planning you need to do, the first thing necessary is to determine your total estate.

Who has an estate? Everyone who owns anything has an estate. An estate is the property that one leaves after one passes away. To figure how large your estate will be, simply take the value of everything you own, including the face value of all life insurance, and subtract from that any debts that are owed. For example, if your house is worth $150,000 and you have a mortgage for $80,000, the net value of your house is $70,000. If you also have $300,00 in life insurance, your estate is worth $370,000 (70,000 + 300,000).

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