5 Estate Planning Mistakes to Avoid
When estate planning, it’s crucial that you avoid making any mistakes. Having an estate planning lawyer help you can ensure that you avoid most mistakes, but there are a few common ones you need to be aware of as well. The worst part of making a mistake in estate planning is that you won’t be the one to fix any problems it causes—your loved ones will.
You would hate to make the experience of your passing worse for your loved ones by forcing them to sort out a problem with the handling of your possessions. So, when you plan your estate with the help of your estate planning attorney, be careful to avoid these 5 common mistakes.
#1: Leaving Your Estate, or the Responsibility of Managing It, to the Wrong Person
All too often, estate holders choose the wrong person to leave the handling of their estate to. When selecting your beneficiaries and those who will be left to manage your estate, choose someone who you know can handle the individual tasks you leave them well. Consider what stage of life they are in and if they’re capable of taking on the responsibilities of handling your estate.
Pick someone who is well organized, trustworthy, manages finances well, and is local if possible. Ask yourself if you would trust them to do this right now. If the answer is no, then this individual might not be up to the task when the time comes.
#2: Keep Your Estate Up to Date
Think of your estate as a living document, not a one-and-done ordeal. As time passes and you experience more life changes (getting married, having children, acquiring more assets, etc.), your estate should reflect these changes.
Unfortunately, many people fail to have an up-to-date estate plan and aren’t fully prepared when they pass. Make sure your loved ones are adequately taken care of by having a regularly updated plan.
#3: Disclose Necessary Details
Too many people fail to communicate the necessary details of their estate planning to those around them. The people that will be responsible for handling your estate should know that you’re giving them this responsibility. You should make sure your loved ones know where your estate plans are located and who is given what proxy.
Take an active approach and include anyone necessary in the process. You don’t want to leave burdensome and nonconsensual responsibilities behind to those you put in your estate plan.
#4: Keep Your Estate or Trust Adequately Funded
Another common mistake people make when planning their estate is failing to keep it adequately funded. This leaves your assets and loved ones vulnerable. If you fail to fund your trust, your loved ones will be out of pocket for the time and costs that go along with the probate process.
Talk with your estate planning attorney and make sure that your assets are controlled by your trust upon your death through proper funding.
#5: Failing to Make An Estate
The biggest mistake in planning your estate is failing to have an estate plan altogether. It’s common for people to keep putting it off—until one day it’s too late. You need to have all of your documents in place and make your beneficiaries aware of these documents and where to find them. Your estate planning attorney can help you make sure you have all the documents you need.
Don’t put your estate planning off. Ensure that all of your possessions are properly handled and that your loved ones are taken care of. Estate planning can be a complicated process with plenty of complexities, but it doesn’t have to be. Call Waters Sullivan today and let us help you put together the perfect estate plan. Our professional and experienced team will take you through each step of the estate planning process and ensure that it’s done right the first time. Contact us today, we’re here to help!