Proper estate planning supports your wishes after death and reduces the burden on your loved ones. However, there are many common mistakes in estate planning that can put you and your assets at risk. Continue reading to learn about some of these oversights and how you can avoid them.
What Is Estate Planning?
Estate planning involves preparing for the management and distribution of your assets after you pass away. It can also ensure your affairs are properly managed should you become incapacitated. An estate plan includes documents like wills, trusts, and powers of attorney.
Common Estate Planning Mistakes To Avoid
Putting It Off
One of the most common estate planning mistakes people make is avoiding the process. Some believe they have plenty of time to handle the task, and others think estate plans are only necessary for people with extreme wealth. However, life is unpredictable, and having an estate plan in place is crucial for everyone, regardless of age or financial status.
Delaying your estate plan could lead to legal battles for your family, the court distributing your assets, and other concerning outcomes.
Forgetting About Digital Assets
In today’s digital age, your online presence and digital assets are important parts of your estate. Failing to include digital assets in your estate plan can result in lost access to important accounts and information.
Failing To Inform Loved Ones
An estate plan is only effective if the right people know about it. Failing to inform your loved ones about your estate plan and its contents can lead to confusion and disputes. Tell your family where your documents are kept and ensure they understand your wishes. This communication can prevent misunderstandings and protect your estate plan.
Missing Essential Documents
Having an incomplete estate plan is another common mistake that can lead to problems. Essential documents include your will, powers of attorney, beneficiary designations, deeds, and other paperwork.
Missing documents can cause strife between family members after your passing. They can also affect asset management and distribution, such as who gains control of your retirement plan. Working with a qualified attorney can help ensure you’re not forgetting anything important when creating your estate plan.
Storing Documents in Inaccessible Places
Storing your estate planning documents in hard-to-access places can lead to problems. If your family cannot obtain these documents when needed, it can delay the execution of your estate plan. Consider keeping copies in a secure but accessible location that you share with trusted family members or your attorney.
Failing To Review and Update Your Estate Plan
Life is full of changes, and your estate plan should reflect those changes. Failing to update your plan after major life events can result in outdated instructions that don’t reflect your wishes. Circumstances might include marriage, divorce, the birth of a child, or the death of a beneficiary. Regularly review your estate plan and update it as needed to ensure it remains relevant and accurate.
Not Working With an Attorney
Creating an estate plan on your own can lead to mistakes and oversights. Working with an experienced lawyer ensures your estate plan is legally sound and comprehensive.
At Crosby Law Firm, we have over 150 years of combined legal experience and have been serving clients since 1980. We provide personalized legal assistance tailored to the unique needs of each case.
When you’re ready to plan for the future by protecting your assets, reach out to our estate planning attorneys in Rockford, IL. Whether you need help managing estate taxes, establishing a Power of Attorney, or creating a living trust, you can depend on us.
Why Consult a Lawyer?
Working with a lawyer will ensure your documents are all in order and legally binding. At Crosby Law Firm, our attorneys can help you navigate complex estate planning laws and make informed financial decisions. We can also aid you in protecting investment accounts, designating beneficiaries, making plans for minor children, and more.
At Crosby Law Firm, we are committed to helping you create an estate plan that protects yours and your loved ones’ best interests.
Contact Crosby Law Firm
At Crosby Law Firm, our attorneys can provide personalized legal assistance to help you avoid common estate planning mistakes. We understand how difficult it is to plan for the future and how emotionally taxing it can be. That’s why we’re here to guide you every step of the way and answer all of your estate planning questions.
Don’t let easily-avoided errors undermine your wishes or your family’s security. Contact Crosby Law Firm today to schedule a free initial consultation.
