Estate planning is the process of anticipating and arranging for the management and disposal of your estate during your lifetime in preparation for your future incapacity or death. This planning involves wills, trusts, powers of attorney, and so on. The following tips are suggestions so you do not make mistakes. The slightest error could lead to trouble for your family or beneficiaries.
Putting It Off
The biggest mistake is putting it off. You cannot predict the future at any time disaster can strike. You do not want your estate to fall into intestate Your assets could go to the wrong people if the court has to decide where your money goes. Even if you are of moderate means you want to financially protect your family. Have an Estate Plan.
Excluding others while making your estate plan. Communicating your estate plan and ensuring your family understands your long-term wishes is important. Doing so may even increase the likelihood that your estate planning is executed according to your wishes. While it can feel uncomfortable to have such discussions, relying on a team of trusted advisors can help. Don’t forget the point of the plan is to take care of your loved ones after you are gone.
Appointing a Single Recipient.
You should always have more than one recipient designated for your assets. What if a recipient passes away before you do? No matter how much you trust this single recipient, you could be creating legal trouble for them later. Even if a spouse is the only one named and they want to give ownership to children they may have legal entanglement that could make it difficult. Another reason is you do not want anyone to feel left out and have litigation. Your single recipient will have to deal with all of that even though they had no control over the situation.
Not Thinking About In-Capabilities
Estate planning also protects you and your assets when you are no longer able to care for yourself. Your plan should not only be for death. You need two directives, one for after you are gone and one for while you are still alive. Consider the power of attorney and a healthcare surrogate.
Naming a Caretaker for Your Underage Children
In your will, you must name a caretaker. However, when you are all wrapped up in money and assets you may neglect to make a solid plan for what should happen to your children. It’s always best to leave specific guidance on how you’d want inheritances passed on to minors. Should it be based on age? Marital status? Graduation from college? Also be careful about how you word any stipulations on inheritance.
Forgetting Taxes and Debt
Don’t forget, debt is a part of your overall assets. Furthermore, probate and similar processes cost money, and there are always taxes to consider. Take these expenses into account before you assume that you can simply give your bank account over to a loved one.
Keeping Track of Legal Documents.
Your estate plan will be on paper, it is an important document. It details who will get your assets and belongings after you die and how you will be taken care of while you are alive. Make sure it is stored in a safe place where it can be easily found. It should be something your family or executor has to hunt for or work hard to get access to. It is best to store it with your attorney this does not make it inaccessible. You can request it back at any time. Death, birth, marriage, divorce, and having children reach adulthood are some of the many reasons estate plans become outdated. Inevitable changes in laws and the tax code, not to mention changes to family and financial circumstances, further erode a plan’s effectiveness. Successful estate planning requires more than just having signed the initial documents: Your plan should evolve as your circumstances do. Death, birth, marriage, divorce, and having children reach adulthood are some of the many reasons estate plans become outdated. Inevitable changes in laws and the tax code, not to mention changes to family and financial circumstances, further erode a plan’s effectiveness. Successful estate planning requires more than just having signed the initial documents: Your plan should evolve as your circumstances do. The estate plan is yours to take at any time. However, the attorney will make sure to destroy and replace old copies any time you make changes. Everyone needs the most recent version to avoid legal entanglements later.
Not Consulting a Lawyer
Most people can benefit from working with an estate planning attorney, You will know how you want to distribute your money and assets but do you know the best methods to make sure everything happens correctly? It is crucial that you consult an attorney when planning for your estate. They can help you write solid legal language that keeps others from challenging your plan. They can also point out any mistakes along the way, keeping your plan in good shape.
It’s easy to defer estate planning because it can either feel intimidating or simply not that urgent. It doesn’t have to be complex, and it doesn’t have to wait. Every year can bring something new to protect and care for, so having a plan can create ways to take the success you’ve already had and extend it to your family, benefiting them not just years from now — but right now.
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About Helmer Somers Law
Helmer Somers Law helps individuals and businesses navigate the complex system of rules that accompany all legal situations. We are licensed to practice in both Kentucky and Ohio and offers flexible, affordable payment terms for our services. We welcome the opportunity to earn your trust and become your lawyer for life! It’s a fact of life in the modern world. There comes a time for virtually every adult American when the services of a competent, dedicated lawyer are required. Circumstances such as divorce, bankruptcy, estate planning or an income tax audit demand that your rights be protected, and your long-term interests advocated for with diligence and perseveranc