Some Common Estate Planning Mistakes and How to Avoid Them
An oversight or error in estate planning can cause multiple challenges for an estate plan, and may potentially cause a decedent’s wishes not to be carried out. The following are the most common estate planning mistakes.
Failing To Create an Estate Plan
A common belief is that estate planning is only necessary if an individual is older or wealthy. However, having an estate plan is important for everyone with assets or minor children. Additionally, it is important for anyone that wants to ensure their health wishes are carried out if they become incapacitated or ill and unable to make those decisions for themselves. Ultimately, every person should consider creating an estate plan to ensure that they have control over their assets, healthcare and children should they pass away or become incapacitated.
Failing to Plan for Incapacity
Incapacity occurs when a mental or physical injury or illness results in a person being unable to manage their affairs or make their own decisions. It is vital to prepare a healthcare directive to advise the estate trustees or family members on what steps they should take if the estate creator loses the capacity to make these types of decisions.
Failing to Name a Beneficiary on Accounts and Insurance Policies
It is important to note that retirement funds, certain financial accounts, and insurance proceeds will pass to the named beneficiary. Therefore, it is crucial to ensure that account owners select and update beneficiaries as necessary. When a person dies without listing beneficiaries, there are many challenges that a loved one must go through to access the funds to which they are entitled.
Failing to Review and Update the Estate Plan
One of the most common estate planning errors is never reviewing or updating an estate plan. It is important to review and update your estate plan every few years, or when major life events occur.
Failing to Include a Business Succession Plan
If you are a business owner, it is important to ensure that your business and all that you have worked so hard to achieve will be protected following your death. A comprehensive estate plan can ensure that your business carries on efficiently and effectively according to your wishes following your death. Failing to include a business succession strategy within your estate plan can leave your company and your loved ones with complex legal and tax challenges.
Schedule to Meet with an Experienced Estate Planning Attorney Today
Creating a comprehensive estate plan can feel challenging and overwhelming. It is important to ensure that your wishes are carried out in the event of your death or incapacitation. Consider visiting with our compassionate and experienced estate planning team in Texas or Florida at Fleurinord Law, PLLC, at 888-904-2297. We welcome the opportunity to help you create your estate plan and avoid any unnecessary estate planning mistakes.
- Probate – Probate is the legal process of validating a Last Will and Testament after death
- Trust – A trust is a legal agreement allowing a trustee to hold and manage assets while also providing many protections, including privacy and the ability to avoid probate
- Trustee – A trustee is a person who holds the title of the assets and oversees the transfer of funds and property to the beneficiaries
- Last Will and Testament (Will) – A Will is a legal instrument stating how the estate owner wants the administer of the estate to distribute assets after they pass away and may also address who will care for minor children