There are many possible estate planning mistakes in the estate planning world. However, many of them can be avoided, if people would ask not only what they should do, but what they should not do. Following that advice is a good way to avoid a messy estate administration case in probate court, according to Market Watch in "7 common estate planning disasters and how to avoid them."
The things to avoid include:
- Do not pass away without a will. It should be obvious. If you have no estate plan at all, you have made an estate planning mistake. However, this is a common mistake because people think they will live longer than they do and will have time to make plans later.
- Do not forget to plan for incapacity. A good estate plan will include documents planning for a time when you can no longer take care of things by yourself.
- Do not think you can get a good estate plan by purchasing a form and filling it out. Mistakes made when people do this are costly and time-consuming to fix.
- Do not make beneficiary designations on your financial accounts, without considering how those designations fit into your other estate plans.
- Do not forget to review your estate plan from time to time to make sure it is still appropriate for your family.
- Do not neglect to get a new estate plan, if you get remarried. This is especially important, if you have children from a previous relationship.
- Do not keep any secrets from your estate planning attorney. Your attorney cannot make proper plans, if all relevant information is not disclosed. That can lead to problems in administering your estate.
Reference: Market Watch (April 26, 2018) "7 common estate planning disasters and how to avoid them."
