Making an estate plan can be a daunting task. There are multiple documents to create and review, and it's easy to make a mistake on one of them. Unfortunately, making a mistake on an important document in your estate plan can negatively affect you and your loved ones. That's why it is so important to be aware of the common mistakes people make when creating their estate plans.
1. Not having a will.
An extremely common estate planning mistake is failing to draft an enforceable will. Without this document, you have no say in how your assets will be distributed after you die. This can lead to conflict among your loved ones and may even result in your assets being distributed incorrectly. If you don't have a will, now is the time to create one.
2. Not updating your documents.
People also frequently fail to update their documents as their life circumstances change. Revisiting your estate plan regularly and making changes as needed is vital. For example, if you get married or divorced, have children, or experience any other major life changes, you will need to update your estate plan to reflect these changes.
3. Not naming guardians for minor children.
If you have minor children, it is crucial that you name a guardian in your will. This person will be responsible for taking care of your children if something happens to you. Without a designated guardian, your children could end up in the custody of someone you would not want them to be with.
4. Not planning for disability.
Many people fail to plan for the possibility of becoming disabled at some point in their life. However, this is an important consideration, as it can happen to anyone at any time. If you become disabled, you will need someone to manage your finances and make decisions on your behalf. Be sure to name a trusted person as your financial power of attorney so they can help you if you ever become incapacitated.
5. Not planning for long-term care.
Individuals also often fail to include or account for the possibility that they may need long-term care. This could consist of nursing home care, in-home care, or other types of assistance. If you don't plan for this possibility, you could end up spending all of your assets on medical bills and have nothing left for your loved ones.
6. Not retaining an experienced estate planning attorney.
Making even one of these common estate planning mistakes can have serious consequences. Be sure to avoid them by working with an experienced estate planning attorney from Rozin | Golinder Law who can help you create a comprehensive and effective plan. With the right estate plan in place, you can protect yourself and your loved ones.
To schedule a consultation with one of our attorneys, call us at (732) 810-0034 or visit us online.