It is essential that every adult should have some sort of estate plan, but one that is poorly thought out or full of errors won’t pass on your money the way you want it to or safeguard you in the event that you ever become incapable of taking care of yourself. Learn more today about an estate planning attorney can help you avoid the common mistakes made during estate planning.
Not keeping your estate plan up to date:
Even after you’ve created your estate plan, life carries on. To name a few changes, there are inheritances, marriages, divorces, children, moves, property sales, changing careers, and so on. To ensure that your legal documentation and beneficiary designations are in order, you should schedule regular estate reviews with your attorney.
Fixating primarily on inheritance:
Estate planning involves more than just designating the beneficiaries of your assets after your passing. In the event of a serious sickness or accident that renders you unable of communicating or making your own decisions, you can safeguard yourself using estate planning tools.
Estate planners in Texas are allowed by law to make an advance directive for this reason. Your advance directive will outline your wishes for end-of-life care. You decide the specifics of the advance directive based on your interests and principles.
Having beneficiary designations out of order:
If you don’t keep your beneficiary designations following your estate plan, any instructions you include in your will or trust for transferring a valued asset, such as a bank account, risk being overwritten.
There may be nothing the executor can do to prevent the bank from going to whoever you designated as the account’s beneficiary upon your death. You must inform your bank of the details of your estate plan to avoid this.
Ignoring taxes:
The desire to see your children or other intended heirs enjoy your money may drive you to transfer some or all of it to them while you are still living. Although you undoubtedly mean well, giving significant presents may result in the recipient having to pay a sizable tax charge. Your heirs and beneficiaries will typically save a tonne of money and hassle by receiving those assets through your will or trust.
Final thoughts:
Creating an Estate Plan is one of the most generous things you can do for your family and loved ones. But don’t allow one of these unintended estate planning errors to cause your good intentions to backfire. Get an attorney today to get help navigating through the process!
