Estate plans are critical documents for anyone, not just those with large estates.
An estate plan can give you peace of mind knowing that your assets will
be handled how you wish, but there are also some issues that you may run
into if you don’t adequately plan. Here are some common issues to
avoid while making your estate plans.
1. Not Making an Estate Plan
You may put off making an estate plan for a number of reasons, but forgoing
an estate plan means that your assets may not be distributed as you intended.
Your family will also have to deal with the additional stress of handling
your estate, on top of other final affairs.
2. Failing to Update Your Estate Plan
Life leads to many changes, and you should remember to update your estate
plan to reflect these changes. Births, deaths, divorces, new property
acquisitions, and other changes can require an update to your will. Review
your will periodically with your attorney to make sure that it still fits
3. Not Making Plans for Disability
An unexpected long-term disability can drastically change your personal
and financial plans. Set aside the time to decide who will handle your
finances, care for your children, or make healthcare decisions on your
behalf. You should make these choices legally binding by appointing a
power of attorney and create a living trust to work on your behalf.
4. Not Transferring Your Life Insurance Policies to a Trust
Your life insurance policies are subject to a heavy estate tax, which can
cause your beneficiaries to receive far less than intended. Protect your
loved ones by making a life insurance trust the owner of your life insurance
policies. This can prevent your policies from being taxed, and will prevent
your beneficiaries from waiting several months to receive the payouts
from your policies.
5. Not Seeking Advice from a Qualified Estate Planning Lawyer
Many of these mistakes can be avoided with the assistance of an experienced
estate planning attorney. They can advise you as to your best options,
ensure that your will or trust needs are met, keep your estate plans up-to-date,
and help you make other decisions pertaining to your end-of-life plans.
Boswell & Dunlap LLP, we are passionate about helping our clients find peace of mind in knowing
that their wishes will be honored and their loved ones cared for, even
after they are gone. Our Polk County
estate planning lawyers are backed by more than 100 years of collective legal experience,
so you can trust that your case is in good hands.
Contact our firm today to schedule a
free consultation. Call (863) 617-7336 today.