Excerpts from the new book by Nancy Keates, The Wall Street Journal Guide to the Business of Life.
Two good suggestions for estate planning:
Don't surprise or confuse your heirs:
A contested will can make legal fees skyrocket. Making clear decisions, telling your heirs exactly what to expect, and being explicit in your will, will help reduce the risk of a legal fight. One common problem is a poorly drafted will that can lead to ambiguities about the deceased's wishes and, ultimately, increase the risk of legal fights. Another thing to watch out for are conflicting directives between the will and, say, a life insurance policy or a retirement account.
Consider a living trust:
Assets in a living trust go directly to heirs designated by the trust and avoid probate, saving you legal expenses. If you own homes in two states and want to avoid probate in one of the states, you can put that home in a living trust. Be sure the cost of setting up trusts, and revising them as situations change, doesn't exceed the legal fees and taxes you are trying to avoid.
