Estate planning is essential for safeguarding assets and loved ones following a person’s passing. Yet, potential pitfalls can result in costly errors and increased stress, typically stemming from oversights or inadequate planning. In the following post, we will examine some common estate planning mistakes people make and provide guidance on how to steer clear of them.
Not Planning Ahead
Many people find contemplating their own mortality challenging. The idea of facing end-of-life preparations can evoke feelings of fear or superstition, leading some to avoid the subject altogether. Additionally, younger generations often operate under the misconception that legal tools such as a Last Will and Testament and powers of attorney are reserved solely for older adults. As a result, many put off drafting these vital legal documents, leaving themselves and their loved ones vulnerable and unprotected in the face of unforeseen circumstances.
Creating Your Own Estate Plan
Having estate planning documents that are incomplete or contain errors can lead to significant complications for your loved ones after you pass away. These mistakes might result in delays, disputes, or unintended distribution of your assets, which can create unnecessary stress during an already difficult time. To avoid these issues, it is wise to consider hiring a knowledgeable estate planning attorney. These legal professionals can guide you through the complexities of legal terminology and requirements, ensuring your estate plan is detailed, accurate, and tailored to your needs.
Not Sharing Your Plans with Loved Ones
Discussing your estate plan with your family is crucial for future clarity. Sharing your thoughts can alleviate confusion, prevent conflicts, and reduce stress for loved ones after your passing. Although it may be challenging, especially regarding mortality, it is important to discuss your intentions openly. This conversation can address asset distribution, care for dependents, and specific funeral wishes. Clear communication also empowers your family to honor your wishes and avoid misunderstandings that can lead to disputes.
Keeping Your Estate Plan Locked Up
Estate documents stored in a safety deposit box or tucked inside a safe at home can be challenging to access during critical times, especially when decisions must be made quickly. To streamline the process and ensure your wishes are honored, consider providing copies of your estate plan to several key individuals. For instance, share these copies with your appointed executor or trustee, who will carry out your wishes, and a trusted family member who can help navigate any unexpected situations. Additionally, share the documents with your estate planning lawyer, who can offer legal guidance and support.
Not Including Digital Assets as Part of the Plan
Many individuals tend to forget the importance of including their digital assets in their estate planning. Digital assets encompass a wide range of properties, including cryptocurrencies like Bitcoin and Ethereum, social media accounts on platforms such as Facebook and Instagram, cloud storage services that hold important documents and photos, as well as various digital files stored on personal devices. To ensure that these valuable assets are adequately managed after your passing, consider appointing a digital fiduciary in your estate plan. This trusted individual would have the legal authority to access, manage, and distribute your digital assets according to your wishes, providing peace of mind for you and your loved ones.
Not Updating Your Plans
While updating your estate plan monthly or even annually is unnecessary, reviewing it after major life events is crucial. Milestones like marriage, divorce, new children or grandchildren, and acquiring significant assets can change your situation. Not adjusting your plan may result in your assets going to unintended beneficiaries. That is why it is important to review your estate plan every three to five years.
Avoid These Common Estate Planning Mistakes, Contact Losavio & DeJean Today
If you are ready to create an estate plan and want help with the process, contact Losavio & DeJean today and work with an experienced Louisiana estate planning attorney.