Several factors affects the validity of your estate plan document. Without the proper knowledge of the procedure, the state laws directives on estate plans, creating an estate plan yourself would only create more of a mess for you and or your loved ones to clear up. Although, you may consider it as a way of cutting cost and saving money, but is it truly worth it? With the mistakes and problem associated? When you or your loved ones may end up paying more on legal fees and time on probate issues. An estate planning lawyer is pivotal to making well informed decisions that would definitely result into making solid estate plans.
Here are common estate planning mistakes:
Wrong inclusion in estate plan document.
For the layman, legal jargons can be very confusing. Much more, the ambiguity of certain terms used in estate planning documents and it meaning differs in separate context leading to wrong inclusion in estate document.
Furthermore, you may not be aware of the state laws and its directives on estate plans. State laws depending on where you live usually dictates what document can be included in you estate plans. They also control the formalities, processes of signing and implementation of such document. When wrong details are supplied in estate plans, the document may turn out to be invalid and revoked.
Whatever your personal thoughts are on lawyers, the fact is you need an estate planning lawyer to help you through estate planning processes.
Mistake with estate evaluation and taxes.
The first of estate planning is usually to make an assessment of your estate, assets and evaluate them after you might have removed all expenses and liabilities. Taxes are placed on estate and other properties. Although with fluctuating economy, taxes placed on estate can be uncertain at different point in time and thus making it difficult for an individual to figure out.
As a result, you need an estate planning attorney to help you navigate through changes on estate and also prevent you from too many taxes.
Failing to plan for incapacity and long-term care
Not making plans to address sudden mental or physical disability may be detrimental to your finances. When estate planning, you should consider creating a living trust or power of attorney in order to name a person who would act on your behalf in the event you fall into illness or involve in a fatal accident. No estate plan is complete without planning for long-term care, as a huge percentage of American senior citizens would need long-term care before they die.
Improper ownership of property
There may be oversights during estate planning which may be brought to light after death. Some assets may be in the name of a partner instead of being jointly owned by the couple. Having joint ownership would ease asset protection and transfer at the death or incapacitation of one partner. Improper ownership could also result when a person gives their own name to their business, transfer retirement accounts into a trust, or putting a child’s name on the deed.
Some people die without having enough asset liquidity. This would be a major source of concern when the estate needs to be distributed among the heirs and there is no readily available cash to distribute or to manage your business affairs. Life insurance is a great way to provide liquidity, pay off debts and distribute amongst heirs.
Contact our Estate planning lawyer
Planning with an estate lawyer is the only way to ensure all appropriate formalities are with proper protocol. With this, you stand at better chances of achieving your goals of estate plans with its adequate execution. On the other hand, doing it yourself option may leave you and your loved ones to chances of revoked, invalid and void estate plan documents.
With the wellbeing of you and your loved ones at risk and safety of your assets in question, is preparing estate plans yourself worth the risk? Contact an estate planning attorney today.
