David Boren, vice president of Chisholm Trail Financial Group providing financial services in Central Texas, spoke with Community Impact about best practices for estate planning. He has 40 years of experience as a certified financial planner.
What are the most common mistakes people make when estate planning, and how can they avoid them?
The worst thing in the world in the state of Texas is to die intestate. The state intestate laws say that if you don't have a will, then if you have a spouse, significant other or someone that you are in a legal relationship with, 50% goes to them. And for any children, 50% goes to the children whether you want it to or not. So it's important that someone take the steps necessary to start this process.
I think one of the most common mistakes is the inefficient titling of assets. There are so many asset classes that can pass outside of probate and against a will, such as life insurance, [which has] beneficiaries. Retirement accounts can have beneficiaries. So can other asset classes [and] can be made to be payable upon death. That includes even bank accounts.
