Common Estate Planning Mistakes To Avoid
In Florida, all adults should have an estate plan. Many people think they do not need one because they do not have minor dependents, significant wealth, or they are not of an advanced age. In fact, nearly half of all adults do not currently have an estate plan in place, according to the AARP.
Truthfully, it is crucial to draft an estate plan that reflects your needs and ensures your loved ones are cared for now, and in the future. It is just as important to ensure that no mistakes are made when creating your plan. Below, our St. Petersburg estate planning lawyer outlines some of the most common mistakes people make when creating their plan, and how to avoid them.
Assuming a Will is All You Need
Wills are the foundation of many estate plans and most adults are recommended to have one. A will can outline how you want your property distributed after your death, name a guardian for your minor children, and designate a personal representative of your estate. While wills do serve many purposes, though, they do not avoid probate, nor will they help you plan for incapacitation. Your estate plan should certainly include a will but you should also consider trusts, advance directives, and other important tools.
Failing to Designate Beneficiaries
You can name your beneficiaries in a will or trust. However, you can also designate beneficiaries on certain accounts so they can bypass probate and be distributed to your loved ones sooner. These include life insurance policies, Roth IRAs, 401(k)s, and more. Without these beneficiary designations, the property will be subject to probate, which can minimize the overall inheritance you leave your family members. Always ensure financial accounts have a designated beneficiary, and ensure they are updated often.
Not Planning for Incapacitation
Most people are aware that creating an estate plan involves determining which loved ones will receive certain property after a person passes away. However, it constitutes much more than that, too. When drafting an estate plan, you can also draft a power of attorney, living will, and other documents that will come into effect if you ever become incapacitated.
A living will outlines your wishes for the end-of-life treatment you may or may not want. A power of attorney, on the other hand, designates someone who will act on your behalf and make decisions for you if you are ever incapable of making them on your own. Both of these documents can ensure your wishes are respected, even if you cannot communicate them.
Our Estate Planning Lawyer in St. Petersburg Can Help You Avoid the Common Mistakes
There are common mistakes that can occur during estate planning. At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning lawyer can help you avoid them so your future, and your family’s, is protected. Call us today at 727-471-5868 or fill out our online form to schedule a consultation and to learn more about how we can help with your case.
Source:
aarp.org/pri/topics/work-finances-retirement/financial-security-retirement/wealth-transfer-inheritance-wills/#:~:text=However, just half (51%),% of adults 65-plus.
