Beginning the estate planning process can seem like such a daunting task. So many considerations go into preparing the best plan for you. I work hard to simplify and uncomplicate the process for my clients, and it is my goal to help them avoid all of the common estate planning mistakes many people make, including the following.
No Written Plan in Place
One of the biggest mistakes potential clients make is to not have any written plan in place, including who will take care of their children, who will receive their estate, and who will make all major decisions regarding property and money both in the event of incapacity and death. Not having a written plan in place leaves so much up to chance. You are assuming your loved ones will know how to handle your affairs. You are also leaving the door open for potential conflict if not everyone agrees on important decisions.
Relying on an Old Estate Plan
Not having a written plan is not the only mistake that can be made. Many times, it is even worse to rely on an estate plan that was written years, if not decades ago. Life constantly changes. What you wanted and what would have been relevant at one point in time does not mean that it is today. A good estate plan needs to be reviewed every two years or at least upon the occurrence of a major life event, including death, birth, marriage or divorce. Family dynamics change, as well. Who you chose to handle your estate 15 years ago may no longer be a viable decisions now. You may have also had an ex-spouse as your main will beneficiary, but does that mean you will want him or her to receive everything years later? An estate plan still offers your written wishes, and even if the document is years old, a probate judge will rely upon your written wishes over what other relatives argue you “may have wanted.”
Relying on a DIY Will
It can be tempting to take the easy route and purchase the cheap DIY will plan you find online. The problem is most times, clients have no idea what they are signing when they complete them, or they have no idea that the DIY will is a standard document that may not cover their own family’s specific needs. Certain requirements need to be met for a will to be considered legally valid, and if you are not completely sure that your document meets these requirements, the result could be your will being thrown out of probate court. I have also personally seen clients who believed they had a revocable living trust only to find they had prepared a will with a testamentary trust that only became valid upon the client’s death, not upon disability of the grantor. While you may pay more upfront, it is often best to have a legal professional work with you directly to prepare a document that fits all your needs and wishes.
Not Planning for Illness or Disability
An estate plan is much more than will or trust document. A comprehensive estate plan allows you to state what your wishes are in the event of your death as well as in the event of death or disability. However, many people will prepare an online will, forgetting to include a power of attorney and healthcare power of attorney document to provide for their needs in the event of incapacity. By not having these documents, you are leaving your fate up to the hands of the probate court who will need to approve and appoint a guardian and conservator to act on your behalf. Not only does this put a great deal of emotional stress on your family, but it also can be an expensive and lengthy process, as well. The more you can put into writing, describing who will act on your behalf if you are sick or incapacitated, what your wishes are with respect to medical care and end of life treatment, and what your wishes are for funeral planning, the easier you are making the process for your family. These documents should always be part of a complete estate plan, no matter what your age or what stage of life in which you may currently be
At Sullivan Law, we offer estate planning packages at a flat and reasonable fee. We also offer free consultations to discuss what your needs are, what you would like to do, and how that can be best accomplished. Everyone’s needs are different, and your wishes should be clearly listed and understood.
Call us at 248.917.1351 or email at asullivan@sullivanlawonline.com to schedule your free consultation today. We look forward to working with you!