It’s hard for just about anyone to think about their own mortality, let alone plan for it. However, ignoring the inevitable can cause big headaches for those who stand to gain your assets. Here are the top mistakes people make in estate planning, and how to avoid them.
Top Estate Planning Pitfalls
Failing to Plan
Not having a plan is the biggest mistake one can possibly make. Don’t procrastinate. Get it done.
Lack of Communication
Discuss your plan with your friends and family. Setting expectations will reduce the chances of disagreements after your passing.
Few or No Beneficiaries
Always name more than one beneficiary. Have a primary and at least one contingent beneficiary for each asset, account or policy.
Not Using Healthcare Reps
Name a Power of Attorney or Health Care Proxy. These are the people who will step in to make decisions for you if you become incapacitated.
Forgetting Your Children’s Futures
Be careful how you word things. If you have young children, include directions on how their guardian should spend the assets. Also, don’t assume your children will want something you plan to leave them.
Not Updating Your Plan
Keep your estate plan current so it reflects all of your major life events or changes. Review it every three to five years to ensure it’s up-to-date.
Ignoring Digital Assets
Don’t forget about your digital assets and how you want them to be handled after you pass away. These assets may include social media accounts, online banking and email accounts.
The estate planning attorneys at the Law Offices of Todd Cushner & Associates know the legal and personal issues that often involve planning an estate. Our experience in drafting wills and trusts ensures that our clients’ wishes are always carried out. Bankruptcy and other legal matters won’t wait. Call us today at 914-600-5502.
