Mistake #1: Not Updating Your Will
Do you know what happens to your assets if you don’t update your will? Your loved ones may not receive what you intended, and your legacy can be tarnished by legal battles. You want your loved ones to remember you for the memories you’ve created, not for the legal disputes you left behind. By regularly reviewing and updating your will, you can ensure that your legacy is preserved in the way you intend.
Mistake #2: Failing to Designate Beneficiaries
Have you ever thought about what will happen to your life insurance, retirement accounts, or bank accounts if you don’t designate a beneficiary? You may be surprised to know that failing to do so can cause your assets to end up in the wrong hands. Your loved ones deserve to benefit from the assets you’ve worked so hard to acquire. By designating beneficiaries for all your assets, you can ensure that your loved ones are taken care of when you’re no longer around.
Mistake #3: Not Considering Tax Implications
The last thing you want is for your loved ones to pay more taxes than necessary when you’re no longer around. Estate planning isn’t just about passing on your assets; it’s also about minimizing the tax burden on your estate. You want to make sure that your loved ones receive as much of your estate as possible. By working with a qualified estate planning attorney, you can minimize the tax liability on your estate and protect your loved ones from unnecessary financial stress.
Mistake #4: Neglecting to Plan for Incapacity
We all hope for the best, but it’s important to plan for the worst. Have you thought about what would happen if you became incapacitated due to illness or injury? You want to make sure that your wishes are carried out, even if you can’t make decisions for yourself. By planning for incapacity and having a durable power of attorney and healthcare directive in place, you can ensure that your loved ones are aware of your wishes and can make decisions on your behalf.
Mistake #5: Not Working with a Qualified Estate Planning Attorney
Estate planning can be a complex process, and you want to make sure that it’s done right. Trying to create your estate plan on your own (DIY) can cause a lot of problems that may hurt you and your family down the line.
Some common problems we see with DIY estate plans include the following:
- Lack of expert knowledge needed to handle the legal, tax, and financial parts of estate planning
- Leaving assets out of an estate plan causing them to go through probate (expensive)
- Not considering changes that may happen later in life
- Accidentally disinheriting children from a prior marriage
- Increasing the chances of fights between family members or beneficiaries
Even though DIY estate planning might seem like a good idea to save money, it can end up costing you a lot more in the long run, both financially and emotionally. By working with an attorney who focuses in estate planning, you can ensure that your estate plan will protect your loved ones when you are no longer around.
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Use the button below to book a call with our firm so we can help you avoid these common mistakes, ensuring that your legacy is preserved and your loved ones are taken care of.
During the call we will learn a little bit about your loved ones, talk about your concerns and goals, and lay out some planning options to help you accomplish your goals.
