A single mistake can ruin your estate. For this reason, it is important you draft an estate plan that is free from any mistake whatsoever. But how do you take note of these potential mistakes so that you can avoid them? That is where this article becomes useful.
Below, we have highlighted some of the biggest mistakes people make when planning their estate. Take note of this mistakes so you don’t make them when planning your estate.
What is Estate Planning?
Estate planning is the act of preparing for the transfer of an individual’s asset and wealth to designated beneficiaries after his or her death. Assets, pensions, real estate, life insurance, cars, personal belongings, including debts are among one’s estate. An estate plan must be written, signed, and notarized by the estate owner.
After your death, your will, a significant component of your estate plan, will dictate how your assets is to be managed and shared. If you die without a will, it is said that you died intestate. In that case, your state will step in.
- Failure to update your beneficiary form
Of course, your will mirrors your intentions regarding your assets; that is who gets what, where, when, and how. However, a will is often superseded by other estate planning documents such as beneficiary forms for retirement plans, annuities, including life insurance policies. Thus, like your will, these forms must be updated.
- Failure to set up a trust
Failure to set up a trust is another deadly estate planning mistakes. Aside from being a tool used to facilitate the transfer of assets, a trust can also be used to bypass the expensive, stressful, and time-consuming probate process. Failure to set up a trust, will leave your estate at the mercy of probate.
- You don’t understand your estate plan:
Surprisingly, there are many people out there who don’t understand their estate place regardless of the guidance of a competent estate planning attorney. Simply signing estate planning documents, and not knowing what you are signing, or what it manes can be an issue.
- Failure to create a power of attorney
A power of attorney is a legal document that allows you to choose an individual who will make decisions for you if you become incapacitated. Failure to create this document will give the court the right to select an individual to make those decisions on your behalf.
- Failure to update your estate plan
An estate plan is not something you create and lock up in your cupboard till you pass on. You need to update your estate plan regularly, especially after a significant event or occurrence like a divorce, the birth of a child, etc.
- Failure to properly title assets
Both inside and outside of trusts, the way in which you own assets make a huge difference. For example, if you own properties as joint tenants with rights of survivorship, the assets will go to the other designated individual, like your spouse after your passing
Need an estate planning attorney?
Due to the complexities that surrounds the estate planning process, you may need the services of an estate planning attorney. With the help of an estate planning attorney, you should be able to not only plan your estate but update the plan later in the future.
An estate planning attorney can also offer you and your family valuable advice that could end up being a lifesaver. In addition, he can help in setting up various important legal estate planning documents like a power of attorney, healthcare directives, a living trust, etc.
If you want to plan your estate, and you need the services of an experienced estate planning attorney, please, don’t hesitate to contact us. Also, if you need help with updating your estate plan, you can contact our office as well. We boast of competent estate planning attorney who can help in creating an estate plan that suits your needs
