Have you considered what will happen to your assets if something unexpected occurs?
Will your assets be distributed according to your wishes?
Will the heirs fight because your wishes are not clearly stated?
While these questions may be uncomfortable, developing competent answers is essential to ensuring your wishes are carried out in an orderly manner that passes on your wealth and legacy, and avoids conflict and cost.
Let’s explore five common estate planning mistakes to avoid. Whether you’re beginning your estate plan or looking to update it, understanding these pitfalls is important for protecting your legacy and providing for your loved ones.
Not Creating a Proper Will
Failing to create a Will is the single biggest common mistake. Creating a Will is the first step to ensuring your wishes will be honored and your assets will go to the people you choose. This can greatly ease the burden on your loved ones during a challenging time. Take steps today to secure your family’s future and ensure your assets are distributed according to your wishes.
Neglecting to Update
Many people think that estate planning is a one-time task. As your life evolves, so should your estate plan. Marriages, births, divorces, deaths, changes in your assets, changes in the law, and other significant events require that you update your estate plan. To avoid complications, it is important to regularly review and update your documents. This ensures your plan reflect your current situation and legal requirements.
Improper Drafting of the Estate Plan
For your estate plan to be legally binding, it must comply with the very precise rules of your state. Failure to strictly comply with the law can result in lengthy costly litigation and your entire estate plan being thrown out which then means the State decides where your assets go. New York has very unique requirements. It is best to consult with our attorneys to make sure your plan meets all legal standards to avoid future complications.
Leaving Out Essential Documents
Good estate planning goes beyond just a Will, but should also address what happens if you become sick or unable to manage your affairs while you are alive. In addition to a Will, you need a Durable Power of Attorney and Health Care Proxy in case you cannot make your financial and medical decisions. Together, these documents ensure your assets and wishes are respected and protect while you are alive, and when you pass away. Contact our firm to ensure your estate plan includes these essential documents, and other estate planning strategies to accomplish your goals.
Ignoring Tax Implications
Estate tax laws change every year. Estate taxes can greatly reduce what your heirs receive. It is advisable to consult a professional to understand these implications and explore strategies to reduce and sometimes avoid estate tax consequences.
Whether you need a simple Will or more advanced solutions to safeguard your assets and provide for your loved ones, our team at Voelkl Law PC is here to help. With over thirty years of experience, we specialize in comprehensive estate planning to achieve your goals and ensure peace of mind. Call our firm at 716-633-4030 to schedule a consultation today!