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Estate Planning Mistakes You Cannot Afford to Make
A
n estate plan is like a parachute. You only need it once, but when you do, it better work! When it comes to passing on your assets, you don’t need any estate plan, you need a good estate plan. Here are a few of the most common mistakes to avoid when it comes to estate planning: No Estate Plan or a Bad Estate Plan Courtrooms are full of legal cases that started when someone died without an estate plan or with a bad estate plan-just ask the heirs of Prince or Aretha Franklin. Too often people do not complete their estate plan before it is too late, or worse, they try to save money and do it themselves. It may be tempting to save money by using a fillin-the-blank form or online service to prepare your will, but wills and trusts are complicated legal documents that need to be drafted by an experienced estate planning attorney. Even an attorney who does not specialize in estate planning can make costly mistakes. Make sure your estate plan is prepared properly by an experienced estate planning attorney. Outdated Estate Plan Quite often people prepare an estate plan, put it a drawer, and forget about it. An estate plan can prove very problematic if you do not regularly update
it when there are changes in your assets, family situations or the law. In one famous case, actor Heath Ledger, had a will, but it left nothing to his minor daughter because it was prepared before she was born! We recommend you review your plan annually to make sure it is up to date and immediately amend it following events like divorce, deaths, births, and inheritances. Shortsighted Estate Plan Many people believe that a will is the only estate planning document they need. A will is a key aspect of all estate plans, but it has limitations, and it will not cover all of your assets: • A Will does not cover jointly owned assets. • A Will does not cover assets with beneficiary designations, such as 401ks, IRAs and life insurance policies. • A will requires your family to go through probate, which can be costly and time consuming. • A does not offer you any protection if you become incapacitated and are unable to make legal and financial decisions. Make sure you have the guidance of an experienced estate planning attorney to create an estate plan that (1) includes all of your assets, (2) includes valuable safeguards for your assets,
and (3) does not force your family to go to court when you die. Incomplete Estate Plan In addition to a will, your plan should include documents that will protect you and your assets if you become incapacitated. Every adult should have a financial power of attorney and a health care power of attorney. A financial power of attorney (called a Durable Power of Attorney) allows you to appoint the individuals who can manage your financial matters if you become incapacitated. A Health Care Power of Attorney allows you to name the person you want to make health care decisions for you if are unable to make them yourself. If you do not have these documents and you become incapacitated there is a very good chance a court will have to appoint guardians to act on your behalf. This is why these powers of attorney are an absolute must! Book an estate planning consultation with Attorney Christine Robbins at Robbins & Bentz, PLLC to discuss your estate plan or to have your current plan reviewed.
Robbins & Bentz, PLLC (704) 892-4098 www.robbinsbentz.com LimitlessMagOnline.com | July 2021 21
