Pobody’s Nerfect. Oh, that should be nobody’s perfect. Let’s face it: we all make mistakes. Some of those mistakes are small, with no lasting impact – easy to overcome. Other mistakes have a lasting effect, not only on us but on our children, too. Estate planning errors tend to be big errors. Let’s look at 6 estate planning mistakes:
#1. Failing to Keep Your Estate Plan Up-to-Date
A Will or estate plan that might have worked 20 years ago probably won’t work for you today. Why? Because things change. Estate plans should be reviewed and changed as often as necessary. Ask yourself these questions:
- Has anyone in my family been born, passed away, married, or divorced since I wrote my Will?
- Has my financial situation changed?
If you answered yes to either of these questions, it’s time to review your estate plan.
#2. Failing to Use a Trust.
Trusts are not for everyone. But many people who need a trust don’t know it. It’s a common myth that only rich people need trusts.
A trust may offer benefits like tax reduction, probate avoidance, asset protection, privacy, incapacity planning, and support for a loved one with special needs.
Talk to a qualified Alabama estate planning attorney to learn your options.
#3. Failing to Account for Personal Property and Business Interests.
If your estate plan is old, it’s likely that you have obtained or sold personal property that throws your old estate plan out of balance. It’s also possible that you may need a trust to protect and transfer property and business interests to your heirs.
Take special care with your estate plan if you own business interests. Your family and your business partners may be adversely affected by your ancient or nonexistent estate plan.
#4. Failing to Plan for Medicaid or Incapacity.
Estate plans tackle issues about death, but also about life as a disabled or incapacitated person. If your estate plan consists of a simple Will you wrote yourself, potential incapacity is probably not covered. Concerns about incapacity that require long-term care increase as we age. However, young people are susceptible to life-changing injuries also.
A complete estate plan will include a durable power of attorney and a health care power of attorney. Both of these documents address incapacity issues head on.
#5. Choosing the Wrong Executor.
People typically name an executor and a successor executor in their Wills. It may be tempting to name your favorite cousin as your executor. However, just because he makes the best barbecue in the state doesn’t mean he can handle probating your estate. Choose someone who is responsible, at least a little financially savvy, cares about your family, and is willing to serve if called upon.
#6. Hiding Your Estate Planning Documents
You may develop the greatest estate plan, one that checks all the boxes. You know your family will be well cared for. However, your estate may be thrown into chaos if no one can find your carefully drafted estate planning documents.
It is true that important documents should be stored in a safe place. However, make sure at least two people know where your estate planning documents are stored. Also make sure your family knows you have an estate plan and has the name and phone number of your attorney.
The Biggest Mistake? Not Having an Estate Plan.
Schedule a consultation with one of the attorneys at Miller Estate and Elder Law, and find out where you stand. Our phone number is 256-251-2137, or you may want to use the Contact Form on our website. We have offices in in Anniston and Birmingham and assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
