The following are some common AND preventable estate planning mistakes I’m sure you want to avoid. As an experienced estate planning attorney, I make every effort when I work with my clients to guide them and ensure everything is complete, but as you’ll see below, some are not within my control.
- Procrastination is definitely the worst (and preventable) mistake—and one that only the client can prevent. Failing to make a plan can have devastating consequences. I can’t stress that enough, but I know human nature often takes over. None of us want to think about our mortality, but I do encourage my clients not to think of estate planning in that way but to think of it as the most loving action you can take on behalf of your heirs.
- Running a close second is not updating your plan. This is almost but not quite as serious a mistake as procrastination, but in some cases, it can be worse. Not adding a beloved beneficiary, not removing a beneficiary, or changing asset distribution based on current relationships can all be big mistakes.
- Choosing the wrong executor or trustee. Initially selecting the wrong person to administer your estate or trust can lead to conflicts, mismanagement of assets, and delays in distributing your assets to beneficiaries. Or, down the road, keeping the person when you update your plan is equally troublesome.
- DIY Estate Planning: Consulting with an experienced estate planning attorney ensures your plan complies with state laws and addresses your specific needs. Unless you are an estate planning attorney, you should not tackle this. It could have terrible consequences for your loved ones – just the opposite of what you wanted.
- Not Having a Power of Attorney. This legal instrument comes in handy if you become incapacitated or out of the country when legal issues arise. Failing to designate a trusted individual to handle these matters can result in court-appointed guardianship, which may not align with your wishes.
I can think of several other preventable mistakes, such as not telling your loved ones your wishes or ignoring your digital assets, but the five I’ve listed are what I consider to be truly serious mistakes. But the good news is, they don’t have to happen! You can ensure they don’t while ensuring you’re taking care of your hard-earned assets and loved ones. Call me today to schedule a meeting to create or update your plan. Call at 513-399-7526 or schedule a consultation through my website at www.davidlefton.com.