Six Common Estate Planning Mistakes
As an experienced estate planning attorney, I have witnessed firsthand the importance of comprehensive and well-executed estate plans. Unfortunately, many individuals fall prey to common estate planning mistakes that can lead to unnecessary stress, financial burdens, and family disputes.
In this article, I want to highlight some of these mistakes and explain how enlisting the guidance of an experienced estate planning attorney can help you steer clear of them.
1. Procrastination: Putting off Estate Planning
One of the most common estate planning mistakes people make is to procrastinate. It’s easy to assume you have plenty of time to plan for the future, but life is unpredictable, and accidents or unforeseen circumstances can occur at any time. By procrastinating, you risk leaving your family members without clear instructions on handling your assets and medical decisions if you become incapacitated or pass away.
2. Failure to Update the Estate Plan
An estate plan is not a one-and-done legal document. Life is constantly changing, and your estate plan should reflect those changes. Major life events such as marriage, divorce, births, deaths, or significant changes in your financial situation should prompt a review and update of your estate plan. Failing to keep your plan current can lead to unintended consequences and the distribution of assets contrary to your wishes.
3. Neglecting to Designate Beneficiaries and Properly Title Assets
A crucial aspect of estate planning involves designating beneficiaries and ensuring that your assets are titled correctly. Naming beneficiaries on retirement accounts, life insurance policies, and investment accounts can help these assets avoid probate and go directly to the designated recipients. It is important to designate beneficiaries or titling assets correctly to avoid delays, added costs, and complications during estate administration.
4. Not Considering Incapacity Planning
Estate planning isn’t just about distributing assets after death. It also involves planning for potential incapacity. Failing to establish documents like a durable power of attorney and a health care directive can leave you and your family vulnerable to court-supervised guardianship proceedings in the event you become unable to make decisions for yourself.
5. DIY Estate Planning
While DIY solutions may seem cost-effective, they often lead to costly mistakes and legal challenges down the road. Estate planning involves intricate legal and financial matters that require professional expertise. An experienced estate planning attorney can tailor your plan to your unique circumstances, ensuring that your wishes are accurately documented and legally enforceable.
6. Overlooking Tax Planning Opportunities
Estate tax laws can be complex and subject to change. Failing to consider tax planning strategies may result in a significant tax burden for your heirs. An estate planning attorney can help you explore options such as gifting, trusts, and other tax-saving strategies to maximize the inheritance your loved ones receive.
How an Experienced Lawyer Can Help
An experienced estate planning attorney, like myself, can serve as your trusted guide throughout the estate planning process. I will take the time to understand your individual goals, concerns, and family dynamics to create a customized plan that reflects your wishes accurately. Additionally, I will keep your plan up-to-date and provide ongoing support as your circumstances evolve.
By working with an attorney, you can rest assured that your estate plan is legally sound. This can minimize potential tax liabilities and provides a clear roadmap for your loved ones in times of need. Don’t leave your future or your family’s future to chance. Contact me, attorney Mark Bryanteson, for a free, initial consultation to discuss your estate planning needs. Let’s ensure that your legacy is protected for generations to come.
