5 Tips to Avoid Estate Planning Mistakes

What are your personal priorities and circumstances? Estate planning comes in many shapes and sizes to fit the specific needs of the individual. For instance, you may want to give part of your estate to a favorite charity. You may have a child with disabilities or have inherited property that resides in a different state from where you live. But while each plan is variable, most estate planning mistakes fall into consistent patterns that can be avoided with some care and good counsel. Here are some key steps you can take to make sure you get what you want.

1. Seek an Expert Legal Review

   Sometimes, in the interest of saving a few bucks, someone will pull up planning documents online or borrow examples from a friend. When it actually comes time to put those drafted papers into action, a lack of legal understanding may lead to unintended results. Confusion over terminology or the steps required for a document to be legally binding can leave family members with a big mess.

2. Keep Beneficiaries Updated for All of your Assets

   Beneficiaries are the people or institutions who will receive your assets. First, it is important to understand that although you may have beneficiaries assigned under your trust or will, this designation does not extend to your insurance policies or retirement plans - these are assigned and maintained separately. You will also want to ensure that you have put a contingency plan into place in the event that the original beneficiary passes away before distribution. This means that you will have both a primary and secondary beneficiary assigned to each asset.

3. Set up Powers of Attorney

   Every Estate Plan should include an up to date Power of Attorney. You need at least two—one for medical (also known as an advance directive) and one for financial matters. The likelihood is that you might be disabled in some way and have need of these document before you ever need a will or other parts of your estate plan.

4. Make Provisions for Special Circumstances

   If you have a disabled child or a beneficiary with substance abuse or behavioral challenges, you will want to set up your plan in a way that supports and protects them for the long haul. For instance, a properly drafted trust can ensure that a handicapped child stays eligible for public assistance. If you have an heir that struggles with money management, you can build in safeguards for dispersal or withhold the funds until they reach a certain age. These are just two examples of a myriad of ways that careful planning can make sure that your resources help your heirs in the way that you intended.

5. Share your Estate Plan

   While you should put your Will or Trust documents in a safe place, they should also be accessible to those who will need to use them. Your Estate Plan will not be of much use if no one can find where you stashed it! A good idea is to make sure your Power of Attorney Agent or the Executor named in your Will have a copy in their possession since they will be the ones responsible for carrying forward your wishes.

Be smart and take good care with your Estate Planning. Your thoughtful efforts will make an enormous difference for your loved ones. Remember that as you navigate all of life’s turns in the road, you can trust our legal team at Hillsborough Wills & Trusts to support you and your family as you Build Your Circle of Security.

Call us today at 919-245-8440 or find us at https://hillsboroughwills.com/contact.