Estate planning is for everyone, no matter the size of your assets. It is important to create a good estate plan to make sure your loved ones are cared for even if you are no longer there to provide for them. When you create a plan, you need the services of an experienced McKinney estate planning attorney. This way, you can be sure your estate plan reflects your current and future wishes. It should contain essential information related to your will, guardianship designations, and beneficiary designations. By working with an attorney, you can make mistakes that can cost you significant assets and the comfort of your family in the future. The following are the most common estate planning mistakes people make:
Not Being Specific About their Wishes
You should communicate your wishes clearly to avoid misunderstandings and misinterpretations among your beneficiaries. One family member may assert that you promised them certain assets but the estate document does not include related information. By being specific about your wishes, you avoid future conflicts among your loved ones. Also, this can make it easier for your trustee or executor to execute your wishes.
Failing to Update Your Estate Plan
A lot of life events make it necessary to change your estate plan. These include the birth of a new family member, divorce, the death of a spouse, a move to another state, and others. Also, you need to update your plan if your goals shift and when there are changes to public policies like tax rates that can impact your estate. Your attorney can explain to you how other life events can affect your estate planning.
Not Planning for Disability or Incapacity
Life is full of uncertainties and you may become disabled or incapacitated in the future because of an accident or old age. A lot of elderly people will need long-term care before the end of their lives. Should you become incapacitated without an estate plan, the court will decide how your assets should be used to provide for your care. You can prevent this from happening by appointing a person to make healthcare decisions for you. Consider creating a living trust. Also, purchasing short-term and long-term disability insurance will ensure you have enough money to fund long-term care.
Failing to Secure the Future of Your Minor Children
If you have minor children and you pass away, the court may step in and appoint someone to raise them and manage their inheritance until they will be of legal age. When it comes to protecting your children’s future, you can choose to build a protective trust into your trust or create a Retirement Proctor Trust that will offer your children a lifetime of income.