Avoid These Common Wills and Trusts Pitfalls in Colorado

Estate planning is often uncomfortable and emotionally challenging. However, a thorough, intentional estate plan is an incredible gift — both to you and your loved ones.

You’ll have the peace of mind that comes with knowing your family will be taken care of, and your family will be able to grieve your loss without trying to figure out how to manage your estate.

Many estate plans involve both wills and trusts. Here are some of the most common pitfalls to avoid when dealing with them.

Forgetting to Update Beneficiary Designations

This is a regrettably common oversight, and it can lead to bitter court battles and family acrimony.

For example, imagine your spouse is listed as the beneficiary of your life insurance policy. You divorce and remarry, but you forget to update your policy. If you die unexpectedly, your former spouse will receive the death benefit.

Your current spouse may be able to challenge the policy in court, but there’s no guarantee they would win. They also may not have the capacity to pursue a court battle while they’re grieving your death.

Vague or Unclear Language

You won’t be present to clear up any misunderstandings your loved ones have about your wills and trusts. That’s why it’s so important to use clear, specific language in all estate planning documents.

For example, imagine you have a large collection of classic cars. If your will includes the phrase, “I leave my cars to my children,” your children may dispute who gets which vehicle. However, if you list each car and which child you wish to leave it to, you can substantially reduce the likelihood of a dispute.

Creating a Will but Not a Trust

Many people mistakenly think that if they have a will as part of their estate plan, there is no need to have a trust as well. While a trust may not be necessary in every situation, having one offers a variety of benefits to your family, including:

• Possibly reducing estate taxes
• Potentially protecting assets from creditors
• Providing privacy
• Allowing assets to pass directly to beneficiaries instead of going through probate

It’s often best to have both a trust and will included in your estate plan. There are many different types of trusts, and an estate planning attorney can help you decide which may be right for you.

Creating an Estate Plan Yourself

Many people create wills and trusts with templates they find online. This may be a quick, cheap way to make a will, but using templates can cause issues in the long run.

Some of these trusts and wills may not be enforceable under state laws, and the language used is sometimes so broad that it causes confusion. The best way to ensure your estate plan meets your needs and those of your family is to consult an experienced estate planning attorney.

Contact Mason Law and Planning Group for Help With Your Estate Plan

Don’t put your family’s future at risk by failing to create a custom estate plan. At Mason Law and Planning Group, our will and trust attorneys have been helping families like yours plan for the future for nearly two decades. Contact us to get started today!