Common Mistake to Avoid with your Estate Plan

Many people unknowingly make costly mistakes during the estate planning process. It is crucial to understand the potential risks and pitfalls in order to avoid these errors. Below are 5 common mistakes that you should avoid with your estate plan.

1. Failing to create an Estate Plan

One if the most significant mistake is not creating one. While it may seem overwhelming to create one, it is a way to secure your family’s financial future. An estate plan will include a will, trusts, power of attorney and health care directives. By not having an estate plan in place, your assets will go to probate, which is a costly process that can deplete your assets. 

1. Neglecting to update the Estate Plan Regularly 

Estate planning is not a ONE-TIME occurrence, but rather an ongoing process that requires regular revisions especially during times of life changing events. Some examples of life changes include: divorce, remarriage, and/or the birth of a child/grandchild. 

1. Failing to include a Healthcare Directive and Power of Attorney 

By having a Healthcare Directive, you are appointing someone to make healthcare decisions for you when you no longer can make them for yourself. It is a way to ensure that you are getting all the medical treatments you want and avoiding any treatments you do not want to receive. Having a Power of Attorney appoints an individual who you trust with the authority to handle financial and legal matters on your behalf, if you become incapacitated. 

1. Overlooking the Importance of Beneficiary Designation

It is important to periodically review and modify beneficiary designations on retirement accounts, life insurance policies, and other financial holdings. Ensure that both primary and contingent beneficiaries are named, and update them as needed, to avoid probate.

     5) Failing to Seek Professional Estate Planning Advice

It is imperative that you consult with a skilled attorney who is knowledgeable in estate planning and possesses the experience to provide invaluable advice while ensuring adherence to all legal obligations. Moreover, they can assist you in identifying potential complexities while offering optimal solutions aimed at safeguarding your family’s financial health.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.