Common Estate Planning Mistakes and How to Avoid Them
Estate planning is of vital importance even for the young. It’s something everyone should do to protect themselves while they are still alive. It ensures your assets are distributed according to your wishes after your death and it will prevent your family from fighting over your estate. You never know when you’re going to need your estate plan to go into effect. So, planning early and often is critical to securing your interests.
When most people think of estate planning, they think about drafting and signing legal documents, but there’s much more to it than that. Estate planning is also about defining your family goals and facilitating conversations that address family values and your hopes for the future.
Every estate plan needs 3 core documents. These include:
- Financial power of attorney – This document authorizes another person to make financial and legal decisions on your behalf in case you become incapacitated.
- Advanced medical directive – This document gives you the opportunity to express your wishes for medical care if you become incapacitated.
- Last will and testament – This document directs your heirs to distribute your estate according to your wishes, names an executor, and names guardians for minor children.
Avoiding online templates
A common mistake that people tend to make is using online templates to draft critical documents like their power of attorney and will. While using the template is convenient and inexpensive, many of these documents fail legal scrutiny because they contradict themselves or don’t follow your state’s laws.
Estate planning is a highly personalized activity. It requires a comprehensive view of the family’s life and situation. Your attorney will conduct a thorough review of your life, your finances, and your family dynamics, which is necessary for drafting an effective estate plan that will properly protect you and your assets.
Thinking your family won’t benefit from a trust
Another common error that people make is believing their family won’t benefit from a trust. Any family that has dependents and assets needs to at least consider creating a trust as it can protect your family and your assets from creditors, avoid probate and maintain privacy.
Failing to review the estate plan periodically
Estate planning documents need to be revisited every time a major change occurs in your life. Your estate plan should be changed every time there is a birth or you acquire a new valuable piece of property. Many people create an estate plan and then forget about it. These folks would benefit from revisiting their estate plan every three to four years. Estate plans benefit from constant updates.
Talk to a Virginia Beach Elder Law Attorney Today
The Virginia Beach estate planning attorneys at the Law Office of Angela N. Manz help people draft comprehensive estate plans to secure their future. Call our Virginia Beach estate planning lawyers today to schedule an appointment and we can begin advising you right away.
