Common Mistakes In Estate Planning

Estate planning is something many people put off doing. Even when people are responsible and create an estate plan, they sometimes make mistakes that essentially undo all of their hard work. If you are thinking about creating an estate plan, it is critical to work with a St. Petersburg estate planning lawyer who can ensure it does not contain any errors that could interfere with your final wishes. The most common estate planning mistakes are listed below.

Failing to Communicate with Heirs 

It is important to inform anyone who is included in your estate plan, whether it is a trustee, an agent, or a personal representative. These individuals need to know what their responsibilities are after you pass away. Communicating with these individuals is important to make sure they are not surprised to learn that you have named them upon your death. Notifying your heirs can reduce potential conflict and delays in administration.

Failing to Plan for the Death of a Trustee or Personal Representative 

The sad truth is that you may survive your trustee or personal representative and they will not be able to act in the role you assigned them. If you have not named a successor for these important roles, the court will appoint a fiduciary who may not be someone you would want handling the administration of your estate.

Failing to Fund a Trust 

Trusts are tools used to distribute assets to your beneficiaries without the need of going through probate. In order for a trust to be effective, it needs to be properly funded, meaning property should be titled in the name of the trust. If you fail to fund your trust properly, your property may still have to go through the probate process and it may not be distributed in the way you intended.

Forgetting to Update Your Plan 

It is said that the only constant in life is change and when life changes, so too should your estate plan. Any time you experience a major life event such as a marriage, divorce, the passing of a loved one, or the birth of a child or grandchild, you consider updating your estate plan as needed. Other life changing events, such as a beneficiary developing a substance or gambling problem, may make you reconsider your estate plans and how to best address such events after your passing.

Not Naming Beneficiaries on Insurance and Retirement Accounts 

If you have life insurance policies or retirement accounts with beneficiary designations, it is important that you name beneficiaries. This allows the proceeds in these accounts to be directly distributed to your beneficiaries. If you do not name a beneficiary on these accounts, they may have to go through probate and creditors may be able to access them.

Our Estate Planning Lawyer in St. Petersburg Can Help You Avoid Mistakes 

At Legacy Protection Lawyers, LLP, our St. Petersburg estate planning lawyer can draft the documents you need, review your case with you, and ensure no mistakes are made so you and your loved ones are protected. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get more information.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html