Mistake 1. Not Having a Will
This is the most common mistake.
While the federal estate tax won't kick in until an individual is worth more than $5.45 million (or $10.9 million for a couple), many states have much lower state estate tax thresholds.
For people with high net worth, obviously the stakes are higher, but for anyone with an income and asset, a will should be in place to properly plan for what he/she wants to happen with the estate when he/she passes away.
Potential negative consequences:
1) If you pass away without a will, future marriages and divorces of the surviving spouse could lead to a scenario where your assets end up with non-family members, while your beloved family members could get left out completely!
2) Without a will, the assets you want to go one place might end up being at a completely different place.
3) Bitter legal battles could be waged over your assets, opening rifts in the family that might never heal.
Please keep reading the estate planning mistake #2.