The Most Common Estate Planning Mistakes

You don't have to make a mistake when you know what to look for. Read on to learn more about the laws regarding estate planning.

If you live with a significant other but are not legally married, you need to set up a special plan to designate this person as a beneficiary. A domestic partner does not automatically receive your assets if you are to pass away.

Additionally, you need to be aware that this partner may be unable to make medical or healthcare decisions for you should the need arise. You need to create a healthcare directive and estate plan putting this person in charge.

When somebody dies in a family, tensions run high. Provide your loved ones with absolute clarity about your wishes so that there is little room for debate as to what you wanted.

One of the biggest mistakes people make is not planning adequately for their children. Trying to gift minor children assets can be expensive and time-consuming. Putting assets and funds into a trust may be the best way to plan for the future of children in your life.

Additionally, your estate plan should name the individual you wish to have care for your child should something happen to you. Keep in mind that this applies not only to minors but also to anybody you have guardianship over. For example, you may have an adult child who has some disabilities and requires more care than most adults.

Even if you have a will in place, your estate may still go in to probate. If you have questions about probate and your will, you should speak with an attorney. If you wish to avoid the process, you can do so with thorough estate planning.

If your marital status changes in any way, you should address your estate plan. If you get a divorce, your estate plan should be updated to reflect new beneficiaries or executors, for example. If you get married, you may want to ensure that your new spouse is added to the plan as well. Failure to add or remove a spouse can lead to some confusing moments.

Taxes can take a significant toll on your assets, no matter who you leave your assets to. To get a better idea of how to approach the tax situation, discuss your options with an attorney to see what your state's guidelines will entail.

Trying to do everything yourself is a big mistake. Many people think because they do not have many assets, they do not need to hire an attorney to put together an estate plan. In fact, many think they have found a loophole by putting a joint title on their assets, perhaps sharing them with a spouse or child.

The main disadvantages to this type of plan revolve around taxes even if it does help you get around probate if that is your wish.

H. Charles Woerner, Jr. PA handles matters related to probate and estate planning. If you need an extra set of eyes on your documents to protect you and your loved ones, you need to work with an attorney you trust. Call our office today to learn more.