Common Estate-Planning Mistakes
Even though every estate plan is unique, a lot of estate planning mistakes are not. In spite of the details of your personal circumstance or your estate objectives, it’s worth your while to examine these 6 common estate planning mistakes and learn how to avoid them.
1) Not Having an Estate Plan
Not establishing an estate plan is the most significant mistake you can make. If you pass away without a will or estate plan, your assets are going to be allocated by your state’s court system according to your state’s intestacy law. The advantage of having an estate plan is your assets are allocated in accordance with your wishes.
2) Keeping Your Estate Plan a Secret
A lot of people don’t talk about their estate plan with those that are involved in vital making decisions and are affected by the allocation of assets like named executors, beneficiaries, and someone with POA. The advantage of keeping everybody informed is that it is going to help decrease confusion and offer clear direction on the way you want your assets managed.
3) Going At It By Yourself
Creating a thorough estate plan is complicated and can be distressing for someone that isn’t familiar with all the legal and tax factors involved in the process. The advantage of consulting with a professional is that they provide guidance to help you avoid mistakes and devise a thorough plan addressing all your needs.
4) Not Keeping Your Estate Plan Up to Date
Declining to update your estate plan might lead to unwanted consequences like your assets not being allocated in accordance with your wishes. It’s vital to bear in mind that over time things are going to change. Keeping your estate plan up to date, particularly throughout important life events, is going to guarantee that your estate plan is up to date so your assets are allocated as planned.
5) Declining To Change Beneficiary Information
When the beneficiaries on your life insurance policy, retirement accounts and investment accounts are not gone over regularly and kept updated, the proceeds might go to someone that you did not want, like your ex-spouse. The advantage of keeping your beneficiaries updated is that these account designations usually supersede whatever you might have written in your will.
6) Failing To Remember to Include Health Care In Your Estate Plan
When you don’t incorporate health care within your estate plan, important medical decisions are going to be made for you if you cannot make them on your own. An advanced health care directive, also referred to as a living will, is going to cover these matters. The advantage of having a living will is that it provides guidance to your physicians and health care providers to make important medical decisions associated with your care should you be unable to make them on your own. It also takes the stress off family members making those decisions on your behalf.
Estate plans are complicated, and whereas some mistakes might turn out to be insignificant, others can have major repercussions. Avoid them by getting assistance from a professional to guarantee your plan clearly reflects your wishes.
Arizona Family Law
Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.
There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.
