Estate Planning Mistakes And Wat You Should Do To Avoid Them

There are many benefits to establishing an estate plan and once you create one, it’s essential to review it on a regular basis. Occasionally it will need to be updated. Below are some considerations which should be addressed when establishing an Estate Plan:

1. Not having an estate plan. An estate plan provides your family with direction and certainty when death occurs. If you fail to organize important details of your estate plan, it can result in undesirable distributions of your assets and additional expenses related to the administration of your estate.
2. Failing to update your estate plan. You purposefully created your estate plan and you’ve selected those who you want as executors, trustees or agents. As relationships change, those individuals named as beneficiaries should be identified and evaluated to ensure you are confident that your assets will be distributed as intended.
3. Not creating a trust. When people think about estate plans, they often assume that their only decision is to prepare a Will.  However, there are many things to consider with an estate plan so that it aligns with your intentions.  If you own a home or have other substantial assets, it may be in your best interest to create a “trust-centered” estate plan.
4. Not creating advanced directives. Advanced directives include Powers of Attorney for Property and Healthcare as well as a Living Will. These documents allow you to choose who can make financial and health decisions on your behalf if you can no longer make those decisions.
5. Failing to maximize your estate plan. In some cases, a basis Trust, Will and Advanced Directives may not offer you the best benefit. There are many types of trusts. It’s imperative that you are transparent about the nature and extent of your assets. By doing so, it will allow an experienced attorney to provide the best solution. As an example, some life insurance policies may require the creation of an Irrevocable Life Insurance Trust in order to avoid estate taxes. Other examples of estate planning tools for specific purposes can be identified in a conference with an experienced estate planning attorney.

Contact our offices in Naperville, IL at (630) 357-2333 or in Chesterton, IN at (219) 797-7820 if you would like to establish an estate plan or are interested in having your estate plan audited.