3 Critical Mistakes to Avoid with Estate Planning

November 3, 2017

No one likes to talk about end-of-life arrangements, but as a responsible adult, you need to make sure your affairs are in order. Unfortunately, only about four out of ten adults actually have a living will, estate plan or living trust in place. Even worse, a lot of those who do have an estate plan have made costly errors in the process that can get in the way later on.

There are good reasons why working with an attorney to create your estate plan is important. No matter how straightforward you believe your will, trust or estate plan to be, there is always room for error. Check out some of the most critical mistakes you must avoid with your estate planning.

Taking a DIY Route to Estate Planning

The age of the internet makes it possible to take the DIY route with just about everything, including estate planning. You may be able to create your own, but you may miss something crucial to your desires.

New Paragraph

  • Not considering things like debts, taxes and other contingencies that can be an issue
  • Not having enough documentation to cover all of your assets
  • Not using the right witnesses to attest to your plans

It is worth noting that witness requirements for estate plans can vary from state to state. Some states require witnesses to be unaffiliated and nonbeneficiary. Some states require more than one witness, while others may only require one. There is no one-size-fits-all DIY estate plan documentation, so having professional guidance is important.

Not Reviewing the Estate Plan Regularly ​

An estate plan is not something you can create and forget about; It must be revisited throughout the years of your life. Change is frequent, with family dynamics, assets and resources always being rearranged and altered. If you make an estate plan now and never revisit it to make adjustments, some pretty big problems can come up when you pass away, such as:

  • Your beneficiaries are no longer living
  • Your estate plan is greatly affected by new probate or estate laws
  • Your number of logical beneficiaries changes due to marriage or the birth of a child
  • Your plan for even distribution of assets is impossible because of a drastic change in those assets

There is not necessarily a set number of years that should pass between estate plan reviews. Rather, you should check your estate plan after or during major life changes or events, such as when you retire or if you get a divorce.

Forgetting to Include Life Insurance Benefits with Your Estate Plan​

New Paragraph

Additionally, life insurance payouts should be figured in with your total estate because they may be taxed the same depending on the state where you live. Failure to consider life insurance payouts as part of your overall estate can leave your designated executor with a much higher estate tax to contend with than they planned.

A good estate plan gives you great peace of mind in knowing that when you leave this earth, your plans will be carried out and your property will be properly distributed among those who are important to you. For help with your personal estate plan, contact us at Osinga Law Offices, S.C.

A man and a woman are sitting at a table looking at a piece of paper.

Estate Planning After an Alzheimer's Diagnosis

September 5, 2018
Nearly 6 million people live with Alzheimer's in the United States. The discovery that your parent is now amongst this group is life-altering. However, to protect your loved one, you must take immediate action.
A man and a woman are shaking hands at a table with scales of justice.

Three Reasons to Hire a Probate Attorney

January 25, 2017
An executor of an estate may attempt to handle all the work to avoid expenses. However, there are situations that call for the expertise of an experienced probate attorney who can either assist in the process or take over the administration.
A small house is sitting on top of a wooden gavel.

Three Reasons Why Estate Planning Is So Important

July 7, 2016
You’ve spent years trying to make ends meet and provide a comfortable life for your family. While providing for them now is important, have you taken the necessary time to prepare for their future? Estate planning is important for a number of different reasons. Not only does it allow you to provide for your family upon your death, but it can resolve a number of potential problems as well.