Did you know that over 50% of Americans say that estate planning is important?
Estate planning is deciding how you want your property to be divided and distributed after your death. It’s also a good way to ensure that family and friends know your wishes for end-of-life care.
In this article, we will discuss some of the most common errors in estate planning and ways to avoid them.
1. Not Updating Your Estate Plan
One of the most common mistakes people make is failing to update their estate planning documents as life circumstances change. If you get married, have children, or divorce, these events can have a major impact on your financial situation, so it’s important to review your plan every few years. You should also review your plan if major life events like buying a house or changing jobs occur.
If there are major changes in your life that could affect your estate plan, speak with an attorney about updating it accordingly.
2. Not Naming Beneficiaries
Another common mistake is failing to name an estate plan beneficiary for certain assets, such as retirement accounts and insurance policies. If you don’t designate beneficiaries for these accounts, they may end up being probated by the court system upon your death. This can cause your beneficiaries to receive less money than they would have if you had named them. It can also cause delays in closing out the estate. Consulting with an Estate Planning Attorney Houston can help you navigate these intricacies and ensure that your assets are distributed according to your wishes, minimizing the risk of costly and time-consuming probate proceedings.
If you don’t name beneficiaries for certain accounts, make sure that you keep a list of all of your assets so that whoever is handling probate can easily locate them. If you need probate administration lawyers, click here.
3. Not Taking Care of Tax Issues
Not taking care of tax issues can be just as devastating to your estate as failing to name beneficiaries. If you don’t take care of tax issues, then the IRS will assume that you’re still alive. This means that any assets you leave behind for your loved ones will be taxed at their full value.
This can cause them to receive less money than they would have if you had taken care of these issues during life instead of leaving them up to someone else after death.
4. Not Having an Estate Plan at All
If you don’t have an estate plan in place, there’s no way to ensure that your assets pass down according to your wishes. Without a will, state laws determine how your assets are distributed upon death. This might not be what you want. It is especially true if you have children from multiple relationships or if there are other special circumstances related to who gets what when you are gone.
If you don’t have an estate plan at all, there’s no way to ensure that your assets pass down according to your wishes.
Errors in Estate Planning: This is How to Avoid Them
With the right estate planning attorney, you can get a well-written will. The best way to avoid errors in estate planning is to communicate with your attorney. Take an active role in the process, and you can work together to overcome any obstacles along the way.
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Also read: How to Come Out on Top of Your First Real Estate Negotiation
