What are the Most Common Estate Planning Mistakes?
When it comes to certainties in life, like death and taxes, people are frightened of both. However, death is often the scarier of the two. People want to avoid talking about death at all costs. This often causes problems in the long run, though, such as not having an estate plan in place when they die. When a person dies intestate, or without an estate plan, their assets are distributed according to state laws. This may not be what they desire.
When people do have an estate plan in place, they often go about it the wrong way. They try to do everything on their own to save money, only to end up feeling overwhelmed. Many people make mistakes during the estate planning process. Here are some of the most common ones to be aware of.
Keeping the Estate Plan a Secret
If you do create an estate plan, do not try to hide it. Make sure all beneficiaries know about the plan and what to expect. That way, there is no confusion. You can answer any questions now before you die. You can provide clear direction on how to handle your assets.
Not Consulting With a Lawyer
Estate planning should not be a DIY activity. There are many legal and tax implications involved, plus creating a comprehensive plan that fits all your needs is not an easy task. You will get overwhelmed trying to do it all on your own. Hire an estate planning lawyer to help. It will be well worth the cost.
Not Updating Your Plan
Estate planning is not a one-time deal. You need to keep updating your will or trust regularly. When updating the contents of your estate plan, do not forget your beneficiaries. You should update your plan after life events such as marriages, divorces, births, and deaths. You should also keep the beneficiaries on your life insurance policy, retirement accounts, and investment accounts updated, as these account designations typically take precedence over whatever you may have written in your will. If you do not update your beneficiaries, your assets could go to someone that you did not intend, such as an ex-spouse.
Choosing the Wrong Executor
Many people choose their spouse or child as executor for their estate. However, these people may be too overwhelmed to manage a complex probate process. Or perhaps they do not have good financial acumen. You may need to brainstorm options outside of the family. Your lawyer can help.
Contact Our Pearland TX Estate Planning Attorney Today
When it comes to estate planning, you may want to save time and money. However, you want to avoid mistakes, and taking shortcuts is not recommended.
Estate plans are complex, and mistakes can have major consequences. Pearland estate planning attorney John Powell III, P.C. can help you make the right decisions now so that everything is fine after your death. We provide sound counsel and representation in all types of estate planning and probate matters. To schedule a consultation with our office, call (281) 747-6346 or fill out the online form.