In life, there is never a better fix to a problem or a mistake than avoiding the error in the first place as it could be very expensive to fix or at time impossible to fix.
The same rule applies when it comes to estate planning. Do what is right, when it is right; take necessary precautions to avoid expensive fixes or impossible fix.
Estate planning isn’t a straight road. It involves series of steps, documentations, evaluation, organization, decision making, etc. In the process of estate planning people make different mistakes which could have negative impact on their estate either now or in the future when they are no more.
Plan your estate
Not planning your estate could be the most dangerous and non-fixable mistake one could ever make. This is because this mistake exposes your assets to a truck load of unimaginable risks.
Planning your estate protects you, your assets, and the interest of your loved ones from risk factors.
Planning your estate is just the beginning. You have to constantly review and update your estate plan as things change. Certain events might occur after you plan your estate and these events might need to reflect on your estate plan; this calls for a review and an update to your estate plan. Such event might be changes in Government policies, birth of a child or grandchild, divorce, marriage, death of a loved one, acquisition of a new property, the list goes on and on. If you die without having an estate plan, many things could go wrong and most of them might be beyond fixing.
Make proper evaluations
Planning your estate could be influenced by sentiments, emotions, etc. these are factors that could hinder you from making smart and wise choices. For instance, when writing your will you don’t necessarily have to give your transportation company to your first child who is a medical doctor just because he is your first child. This single decision of yours will have a negative impact on your business on the long run probably when you are dead. If you have a child say, your last child who has interest in the family business he should be the one to get it because; he will be able to properly manage it in your absence.
Include the future in your plan
Planning only based on circumstances of the present could be a huge mistake which might not be fixable or might be too expensive to fix. For instance, setting up an irrevocable trust for someone you are in a romantic relationship with. Also, not making retirement plans could be really bad.
Plan for incapacitation
No one knows what is going to happen the next minute, day or year. In the case of a sudden incident which puts you out of commission your whole estate will be exposed to the risk of poor management. Also, decisions concerning your health will be made by whomever the court appoints. These might not be your best choice. Failure to name a guardian for your children should anything happen to you and your spouse means the court will decide who takes care of your children.
Avoid DIY
Most mistakes people encounter with estate planning are due to this particular reason. Avoid “do it yourself” this is not the best option of estate planning you can adapt. Attempting to plan your estate using online platforms would lead to regrettable mistakes which might not be fixable.
Planning your estate yourself will definitely result in different mistakes such as; the error of omission. An estate plan comprises of many different documents of which if any of them is omitted it might cost you a fortune to fix if it is fixable.
Mistakes due to poor and unprofessional choices could arise. The work of a novice or inexperienced can never be like that of a professional. There are professional estate planners, and attorneys out there who are specifically trained for this purpose. Why not get them to do your planning instead of risking your estate?
These trained professionals will direct, guild and advice you on the best available choices you have.
As earlier said, failure to plan is the most expensive estate planning mistake there could be. Reach out to our attorneys today for professional planning consultation.