An estate plan can help protect you, your family, and your legacy, but one that is not structured properly can cause negative repercussions. Here are the six biggest mistakes that you should avoid when making your estate plan:
- Not Making a Plan
The most common mistake is not making an estate plan at all. National estimates report that more than 60% of people do not have a will or basic estate plan in place. If you do not have a proper estate in place, state default rules can apply, such as having an estranged relative inherit from you or a separated spouse having the ability to make medical decisions for you. Creating your plan can help you avoid these consequences.
- Not Updating Your Plan
The second most common estate planning mistake is not regularly updating your plan. You may still have your ex-wife listed as the personal representative of your estate. You may have had a child who is not accounted for in your estate plan. You may have had a falling out with a beneficiary and no longer want that person to inherit from you. An old estate plan that does not communicate your current wishes can undermine your peace.
You may want to consult with an estate planning attorney if any of the recent changes have occurred in your life since your last update;
- You got married
- You got divorced
- You had or adopted a child
- You obtained valuable property
- A beneficiary or fiduciary died
- Your opinions have changed
- You received a poor medical diagnosis
- Appointing Untrustworthy People to Trusted Positions
A particularly dangerous estate planning mistake is appointing the wrong people to fiduciary status. If you appoint a trustee or power of attorney, you may give this person considerable power over your property and finances. It is critical to a solid estate plan not to appoint an untrustworthy person to a fiduciary position.
An experienced estate planning attorney in Bethlehem can discuss your wishes with you and make suggestions on which individuals to appoint, as well as limit the possibility of your trust being abused.
- Failing to Fund Trusts
A trust is a powerful estate planning tool that allows you to transfer property from yourself to the trust so that the trust becomes the new owner of the property and take the property out of your estate so it is not subject to probate. However, many assets must be transferred through the use of a deed, title, or similar document. Without this final step, the property does not become part of the trust.
- Failing to Plan for Incapacity
In addition to planning for your eventual death, an estate plan can also provide a clear plan in case of incapacity. An estate planning lawyer can draw up documents for you that discuss your medical wishes, appoint a person to make medical decisions on your behalf, and protect your assets in the event of incapacity.
- Not Hiring an Experienced Estate Planning Attorney in Bethlehem
Some people who are after affordable estate planning options may consider drawing up their documents. However, web forms and legal document service providers are often not state-specific and not suited for dealing with complex issues. If you want an estate plan that is properly prepared, valid in Pennsylvania, and suited to your particular needs, contact The Law Office of William W. Matz, Jr. at (610) 691-7888. Our experienced estate planning attorney in Bethlehem can discuss your needs and craft a personalized plan.