Common Estate Planning Mistakes And How To Avoid Them

In this article, you can discover…

• Why updating your estate plan is crucial.
• How DIY estate planning can lead to serious errors.
• Risks an attorney can help you avoid when estate planning.

Why Is It Critical To Understand The Complexities Of Proper Estate Planning To Protect Your Legacy?

Understanding the complexities of estate planning equips and empowers you to express your wishes and make sure that your plans for your assets are respected and secure. Without the proper legal help, understanding which documents to use can be incredibly difficult, and lead to mistakes that impact generations.

Hiring a seasoned estate planning lawyer to help you understand these nuances allows you to choose the estate planning option that works for your assets, family members, and wishes.

How Can Failing To Update Your Estate Plan Regularly Lead To Problems?

Estate plans need to be updated to align with changing circumstances, family dynamics and wishes. For example, if someone passes away, you’ll want to remove them from your will.

If you marry, you’ll probably want to include your new spouse in your plans, and if you divorce, it’s generally a good idea to remove your ex-spouse from your estate plans.

Every major life event should be an opportunity to consider your wishes for your assets. Failing to do this can lead to your wealth going where you don’t want it to or important people missing out on assets you meant to leave them.

Why Is It Important To Include All Of Your Assets In Your Estate Plan?

If all of your assets are not included, you may leave valuable items or amounts of money unclaimed. This will leave the probate court with a puzzle to solve, trying to understand what your wishes might have been.

This lack of clarity can also cause conflicts between surviving family members. Spelling out your wishes through wills and trusts helps ensure clarity, harmony, and respect for your wishes.

Attorney Donald Janklow is a veteran attorney serving Colorado. For over 50 years, he’s helped clients just like you better understand estate planning and avoid costly mistakes.

Have questions? Reach out to Donald Janklow Attorney At Law at (970) 353-4000 for an initial consultation today.

What Issues Can Arise From Not Naming A Contingent Beneficiary?

If the primary beneficiary dies and you have not named a contingent beneficiary, the beneficiary’s share may not go where you want it to. Instead, it may go to someone you disapprove of or don’t have a strong relationship with. Naming a contingent beneficiary ensures your wishes and perspectives are respected, as well as plans for alternative heirs.

What Are The Risks Of Not Planning For Incapacity?

If you plan for incapacity, you can name a guardian or a conservator. A guardian can help care for you if you can no longer care for yourself, while a conservator can help handle your finances.

If you don’t name a guardian or conservator yourself, the court could appoint a stranger who doesn’t know you at all and who may not be a good fit. Planning for incapacity eliminates these risks and gives you more control of your own care.

How Can DIY Estate Planning Lead To Costly Mistakes?

One of the biggest concerns with DIY estate planning is ambiguity. If you were to draw up your own will, the language you use therein may sound perfectly clear to you but be ambiguous to a listener.

This can lead to conflicts, debates, and costly proceedings to try to decide what you meant after you’ve passed away. And unfortunately, as you’re already gone, you can not simply explain what you meant or answer loved one’s questions.

Estate documents drawn up by an attorney will be legally clear, easy for a judge or a lawyer to understand, and leave no ambiguity or doubt as to your wishes.

How Can Failing To Plan For Estate Taxes Impact Your Heirs?

Without proper planning, your assets can be significantly taxed, reducing the amount of money available to beneficiaries. With proper planning, the amount going to your heirs can be maximized, ensuring more of your assets benefit your loved ones or desired causes.

Consult with an estate planning attorney before any of these problems arise. A good attorney can answer your questions, tailor estate plans to your unique family or personal situation, and make sure that your wishes are respected.

Still Have Questions? Ready To Get Started?

For more information on Estate Planning Mistakes And How To Avoid Them, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (970) 353-4000 today.