You work hard to accumulate everything in your Michigan estate. Understandably, you want your hard-earned assets to go to people or organizations of your choosing. When mistakes happen during the probate and estate planning processes, they sometimes lead to a problem called an incomplete transfer. It’s beneficial to learn common reasons why incomplete transfers happen, so you can do your part in preventing them.
Improperly drafted or unsigned documents
A trust, will or deed can all serve as legally binding documents outlining your wishes while you’re alive, incapacitated or after you pass away. However, it’s vital to ensure you or a professional properly prepares and signs any of these legally binding documents. If not, regardless of your wishes, these mistakes can result in incomplete transfers.
Lacking legal capacity
Legal capacity is a vital term often used in the realms of probate and estate administration. This term means that someone is of sound mind and not under the influence of unwanted coercion or pressure when preparing, executing and signing legal documents. If you’re not of sound mind, or another party pressures or threatens you into making a will or trust, these situations result in incomplete transfers.
No funding
Wills and trusts are crucial estate planning tools. However, wills and trusts require something of value for a person to pass on to their chosen beneficiaries. Incomplete transfers can occur when there are no assets or not enough of them in your accounts.
Outdated estate plans
Your wishes can often change over time. As your family grows, adjusting your estate plan to reflect these new additions and changes is vital. An outdated plan for your estate can cause incomplete transfers if attempting to give assets to someone not named in your trusts or will.
If you’re dealing with incomplete transfers, carefully review estate planning-related documents. Sometimes, a simple change can resolve incomplete transfers.