The Millman Law Group can help you avoid these estate planning pitfalls and errors.
Estate planning guarantees that your assets are distributed according to your wishes and that your loved ones are protected after death. However, many common mistakes people make can cause unnecessary complications or disputes. The Millman Law Group is here to guide you through avoiding eight common estate planning pitfalls and ensuring your plan is comprehensive and effective.
Not Having an Estate Plan
One of the biggest mistakes is not having an estate plan. Without a plan, your estate will be distributed according to state law, which may not align with your wishes. This can also lead to disputes among family members and unnecessary legal costs. Making an estate plan ensures that your assets go to the people you choose and that your legacy is handled as you intend.
Failing to Remove or Add Beneficiaries
Life circumstances change, and the beneficiaries you chose at one point may no longer be the best fit. If you fail to remove beneficiaries after a major life event, such as a divorce or the death of a loved one, assets could end up in the hands of people you no longer want to benefit.
Additionally, If you don’t update your estate plan to include new family members, such as children or grandchildren, they may be left out of your inheritance altogether. Regularly adding beneficiaries as your family grows ensures that everyone is accounted for in your plan.
Hiding Your Plan
While estate planning documents are legal and private, hiding them can lead to confusion and difficulty for your loved ones after you pass. It’s essential to inform key people, such as your personal representative and close family members, about the existence of your plan and where they can find the necessary documents. Hiding your estate plan can lead to delays and potential conflicts when it’s time to administer your estate.
Failing to Put Everything in Writing
Verbal agreements or informal discussions about your wishes are not legally binding. It’s critical to put everything in writing to avoid disputes or misunderstandings. Your will and other estate planning documents should clearly outline your wishes.
Failing to Fund a Trust
If you create a trust but fail to transfer assets into it, the trust becomes ineffective. Many people set up a trust with the intention of protecting their assets and avoiding probate but neglect to fund it adequately. Be sure to transfer ownership of your assets, such as real estate, bank accounts, and investments, into the trust so it can function as intended.
Not Reviewing Your Plan Regularly
An estate plan isn’t something you set and forget. Life changes, such as marriages, divorces, births, and deaths, can significantly impact your plan. Failing to review your estate plan can result in outdated provisions and beneficiaries that no longer reflect your current situation.
Never Reviewing Your Assets
Just as it’s essential to review your estate plan, it’s equally important to review your assets. If you acquire new property, investments, or businesses, make sure they are accounted for in your plan. Neglecting to do so could result in these assets not being distributed according to your wishes.
Not Exploring All Available Protections
There are numerous estate planning tools available, from trusts to powers of attorney, that can offer advanced protection for your assets and loved ones. Failing to explore all available options may leave your estate vulnerable to unnecessary taxes, creditors, or disputes. Working with an experienced estate planning attorney can help you identify all the protections that make sense for your situation, ensuring your plan is as comprehensive as possible.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.