Planning Your Estate? Don’t Commit These Mistakes

People seem to have a common misconception surrounding estate planning and wills. They believe that estate plans aren’t something one should worry about until they are much older. This is just one of the mistakes that people generally commit when it comes to planning one’s estate.

According to the seasoned estate planning trust attorney in Grand Rapids, MI at the law offices of Sean Patrick Cox, this is something that you should take very seriously… even if you don’t own substantial assets.

Fortunately, even the most complex mistakes associated with estate planning wills and trusts can be avoided if you are proactively cautious.

In this article, we will shed light on some common mistakes committed during estate planning, so you know exactly what to look out for.

1. Not Updating Your Estate Plan Frequently

Estate planning isn’t a one-and-done deal. It is imperative to keep your plan as current as possible. Many major life events can serve as a sign that you need to update your plan. Events like a marriage, childbirth, divorce, or unexpected death of a beneficiary should compel you to update the plan. Regardless of whether or not a major life event occurs, the estate planning attorney in Grand Rapids, here at Sean Patrick Cox recommends reviewing your plan every three to five years.

2. Inappropriate Funding of Trust

The Trust is the most integral aspect of an estate plan. However, it is good for nothing if it isn’t appropriately funded. We recommend seeking expert legal counsel to assist you with the funding of your trust. Learn about how to get your TIN, how to manage your assets (especially those that don’t have titles), learn how to title them, etc. to properly fund and manage your trust without hassle.

3. Naming a Single Beneficiary

It is a safe bet to name more than one beneficiary for your estate. This becomes imperative if you consider that there is a chance that a beneficiary may pass away before you do. As such, it would be wise to name a primary beneficiary for your assets and then list down one or maybe more contingent beneficiaries.

4. Not paying heed to Power of Attorney

Should you become incapacitated, there will be people who’ll have to step in to make crucial decisions on your behalf. Naming a power of attorney basically allows you to decide who that person will be. So, make sure your living-will designates a power of attorney so you have trusted people taking charge when it isn’t possible anymore for you to do so.

5. Forgetting tax liability

Tax liability on an estate can severely hinder your plans. Unless you have a large estate, tax liability isn’t something you’ll need to worry about. We recommend enquiring whether the state you reside in imposes an estate tax before you start drawing up your plan. If so, understand what its limits are. Estates can lose their value with heavy taxation. It would be in your best interest to leverage gifts, trusts, and other similar policies to avoid probate and taxes.

Conclusion

Despite being vigilante, estate planning is a behemoth task that one cannot undertake without expert assistance. You need seasoned experts who possess the insight necessary to help people create and manage estate plans. Here at the offices of Sean Patrick Cox, we specialize in creating custom estate plans in accordance with our client’s unique circumstances.

We are the first name that pops up when people in Grand Rapids search – ‘best elder law attorney near me’. Needless to say, Sean Patrick Cox is the law firm you need by your side to create an estate plan that best serves you and your beneficiary’s interests.