4 Common Estate Planning Mistakes
Estate planning is an important step toward securing your family’s future and making sure your assets are managed according to your wishes. However, there are several common mistakes that people make during the planning process that can lead to complications later down the road.
1. Procrastinating
One of the biggest estate planning mistakes is to wait too long to get started. It’s not just for retirees or the wealthy. Anyone with assets, dependents, and specific wishes about their legacy should have one in place. Life is unpredictable, and delaying your estate plan can lead to costly legal battles and delays in asset distribution.
Start planning your estate as soon as you acquire any major assets or have dependents. The process can evolve over time, so what you put down now isn’t set in stone. Work with an estate planning attorney to identify the critical elements of your plan and make sure everything is in place regardless of your age.
2. Not Updating Your Plan
Your plan needs to change as your life changes. Major events like marriage, divorce, the birth of a child, or buying a house necessitate updates. An outdated plan might not account for recent additions to your family and new assets, which can cause hostility and friction among beneficiaries when the time comes to distribute assets.
Look over your plan every few years or whenever a major life change takes place. Estate planning can evolve just as your life does, and it needs to reflect your most recent wishes.
3. Not Naming Contingent Beneficiaries
One of the core components of estate planning is the naming of beneficiaries. However, not having contingent (or secondary) beneficiaries is a common oversight. If your primary beneficiary passes away or is otherwise unable to inherit, the asset could end up going through probate and racking up legal fees and delays.
Having contingent beneficiaries in place offers an additional layer of security and will ensure your assets are distributed as you want them to be without unnecessary court involvement. When you account for different scenarios, you can avoid unwanted hassles down the road and create a more resilient estate plan.
4. Overlooking Healthcare Directives
Most people focus on the financial aspects of their plans, and healthcare directives are often forgotten about. However, they’re an equally important part of estate planning. Also called a living will, this document outlines your preferences for medical treatment should you become incapacitated.
Without that document, your family members might face tough decisions about your care, and this can lead to disagreements and added emotional strain. Including a healthcare directive will help ensure your medical wishes are honored, and it’ll give your loved ones guidance if you can’t make your own decisions.
Ask your estate planning lawyer to include a health care directive and a durable power of attorney in your estate plan. They’ll protect your personal wishes and prevent undue stress on your family should the unthinkable happen.
Partner With a Qualified Estate Planning Attorney
At Mason Law and Planning Group, we understand the importance of a secure estate plan and are committed to helping you secure your legacy. Contact us today to schedule a consultation with our team and start building a plan that protects your family and assets for generations to come.
