Think Twice About Adding a Beneficiary to Your Deed

One of the critical reasons to engage in estate planning is that the upfront costs to establish the proper estate planning strategies often cost much less than the trouble that can arise if a person does not create a proper plan. One of the most costly types of estate planning errors involves the methods that a person utilizes to convey property to loved ones following death or incapacity.    A unique challenge presented by many individuals currently engaged in the estate planning process is that they have been in their “home” or property for many years, during which time the worth of the estate has increased substantially. Consequently, a transfer of the property creates long term gain complications, which means that listing a beneficiary on a property deed is often not the best type of estate planning strategy.    The Challenge Presented by Listing Beneficiaries   Most people list beneficiaries on various estate planning documents including life insurance policies, retirement accounts, and trusts. Consequently, these individuals often make the mistake of thinking that it will present little harm to name a beneficiary on a deed. Even if a person is aware of the risk presented by transferring property in this [...]