How Can I Avoid the Most Common Estate Planning Mistakes?
It is important for everyone to create an estate plan, no matter their age. This allows them to prepare for their future and death. This can provide you with comfort in knowing your estate will be taken care of the way you want it to when the time comes. However, the process of creating this plan is not always easy. There are many different ways it can be done depending on what your desires are for your estate. This can make it easy to make a mistake that can impact the effectiveness of your estate plan. Continue reading below to learn more and contact an experienced Alabama estate planning attorney for assistance.
Procrastinating in Setting Up Your Estate Plan
One of the first mistakes that many individuals make is putting off setting up an estate plan in the first place. When someone is young or middle-aged and in good health, it may be difficult to see the urgency of estate planning. But this is exactly the time to get your affairs in order.
If there is one lesson we have learned over the past couple of years, it is to expect the unexpected. The Covid pandemic has claimed the lives of more than a million Americans, and many of them were individuals who were in relatively good health and thought they had many more years ahead of them. Whatever your stage in life, if you do not have an estate plan, now is the time to set one up.
Not Creating a Will
Failing to have an estate plan can cause your loved ones to lose out on cherished assets. This is because there is no guidance on how you want your estate to be administered. It is because of this that, in these situations, your estate can become the property of Alabama. When this happens, it can be distributed by the state based on a succession schedule. This may not be what you would have wanted for your assets, which is why it is better to create an estate plan as soon as possible.
Failure to Communicate Your Plans to Loved Ones
Whenever possible, it is best to have a conversation with your loved ones about your final affairs and how you want them carried out. There are, of course, instances in which this might not be a good idea, but usually it is good to speak with close family members who will be part of carrying out your estate plans, so everyone is on the same page. The conversation does not have to be too detailed, just a general overview of what you want to happen can be very helpful.
Trying to Create Your Own Will
You are not required to use an estate planning attorney to create an estate plan. There are many free options available online that can be used instead. However, while this can be enticing, it is very easy to make mistakes in the estate planning process that can open you up to certain legal pitfalls. By utilizing the services of an attorney, you can ensure your plan accomplishes everything you want it to.
Failing to Plan for Incapacitation
Estate plans are not only used to prepare for death. They can also designate certain individuals who can help to take care of you and make decisions on your behalf in the event that you cannot do so yourself. While no one wants to consider the idea of being mentally or physically incapacitated, it is crucial to prepare in advance instead of being caught off guard without a plan.
Failing to Update Your Estate Plan
People experience many different changes in life as it goes on. This can include different losses and gains. An estate plan should always reflect these changes. It is because of this that you should revisit and update your plan several times throughout your life. The rule of thumb is to look at your estate plan every 3-5 years to be sure it still reflects your wishes for your estate.
Naming Only One Beneficiary
This is a simple thing, but it is often overlooked. When you name beneficiaries for financial accounts and life insurance policies, you should always name one or more secondary or contingent beneficiaries in case something happens to your primary beneficiary. Otherwise, it could trigger the probate process regarding the particular asset, which is a waste of time and money.
Contact our Firm
Stone Crosby, P.C. has proudly served clients in Alabama for over 100 years. Our firm has experience handling matters including divorce and family law, estate planning and administration, business law, employment law, class actions, consumer protection, business law, real estate law, among many others. If you require quality legal representation, contact our firm today to schedule a consultation.
