More Common Estate Planning Mistakes

Preparing an estate plan does not have to be a complicated process. Certain important decisions need to be made regarding who will handle your estate upon your death, who will take care of your minor children, and who will handle certain roles in the event of your potential incapacity. I work hard to simplify and uncomplicate the process for my clients. I also work hard to eliminate some of the more common estate planning mistakes many people make, including the following:

Not reading the documents before signing

While, yes, you do hire a professional to prepare your documents because he or she should know what needs to be in them, it is equally as important that you, as the client, carefully review everything before signing. The last thing I want to hear as an attorney is that you have signed something you either do not understand or have not read. These documents affect so much of your rights and your assets that it is imperative you understand what is contained within them.

We go over a lot of basic background material during that initial consultation, and I am well aware of the fact that the clients likely do not retain everything I tell them during that first conversation. When you are home and filling out your intake form to begin the process, it is possible you will have questions that include something we discussed. Do not feel like you cannot ask those questions. I have created this blog in an effort to put more information out there for clients to understand the process, but I also want to know you clearly understand what you are doing, as well. During the signing appointment, I will also go over the documents, as well, in detail regarding what you are signing. That does not mean; however, you should not have read them in advance before our appointment.  You may not understand all the legalese within the documents, but if there is something you do not understand, please ask so that I can clarify any misunderstanding.


Not funding your trust

Another common mistake that clients make after creating a trust is not funding the trust. What this means is they fail to transfer title to property or put certain pieces of property in the trust, which puts this property at risk of needing to be probated upon your death. When I provide you the hard copies of your signed documents, I also include a memorandum that explains what the next steps are to finish the estate planning process. With a revocable trust, these steps include filing the deed placing your home into the trust with the county clerk, completing beneficiary designations, and assigning a payable on death designation for any open bank accounts. Do not ignore these directions as they are important for all clients to fully complete the process.

Making it too complicated

One common roadblock I find clients struggle with is making the process much too complicated than it needs to be. After the initial consultation, I send clients home with an intake form that allows me to obtain the necessary information to get started. When making selections as to who will serve in various roles, such as trustee, power of attorney, and guardian, I always recommend clients answer these questions as if something were to happen to them tomorrow. Who would be the best person to serve in this role at this moment in time? Estate plans need to be reviewed periodically, and they may need to be updated if the client goes through certain life changes. These changes can be done through simple amendments later. I also always recommend clients try to keep instructions as to how the trust assets will be distributed as simple as possible for their family members. The last thing they want is to leave their relatives a list of complicated instructions that they will need to hire an attorney to decipher. It is for this reason that clients need to keep the process as uncomplicated as possible.

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!