Avoid These Common Estate Planning Mistakes

Having an estate plan, even an imperfect one, is usually better than having no plan at all. But an existing plan can still have serious flaws that defeat its overall goals or objectives.

A plan based on misperceptions, including the idea that estate planning must be perfectly timed, can be nearly as problematic as putting off planning altogether.

If it has been a while since you revisited your estate plan, or if you are still waiting to get started, knowing what not to do can help you avoid mistakes that may doom an estate plan to failure.

Don't Wait for the "Right Time"

One of the biggest misconceptions about estate planning is that it can wait.

Some people believe they need to be retired, have accumulated significant wealth, or experienced a major life event before creating an estate plan. Others intend to get started after the holidays, once work slows down, or when life feels a little less busy.

Unfortunately, life rarely follows a schedule.

Estate planning is not just for retirees or those with substantial assets. If you own a home, have retirement accounts, want to provide for loved ones, or simply want someone you trust to make financial or medical decisions if you cannot, an estate plan is worth having.

Creating a plan before a crisis gives you more options and allows you to make thoughtful decisions without the pressure of an emergency.

Don't Assume a Will Covers Everything

A will is an important part of an estate plan, but it is only one piece of the puzzle.

Some assets pass according to beneficiary designations rather than your will. Retirement accounts, life insurance policies, payable on death accounts, and transfer on death accounts generally go directly to the person named on the account.

Likewise, jointly owned property may pass automatically to the surviving owner depending on how it is titled.

That is why reviewing beneficiary designations and ownership of your assets is just as important as updating your will or trust. All of these pieces should work together to accomplish your overall goals.

Don't Rely on Do It Yourself Documents

Online templates and estate planning software have made it easier than ever to create legal documents on your own. While these tools may seem convenient, they often fail to account for differences in state law, changing family circumstances, or more complex planning needs.

A common example involves revocable living trusts.

Many people believe that once they sign a trust, their planning is complete. In reality, assets generally must be transferred into the trust for it to work as intended.

A trust that is never funded cannot provide the benefits it was designed to deliver.

Working with an experienced estate planning attorney helps ensure your documents work together and reflect your family's unique circumstances.

Don't Forget to Update Your Plan

Estate planning is not something you do once and never think about again.

As your life changes, your estate plan should change with it.

It is a good idea to review your plan after major life events such as:

• Marriage or divorce
• The birth of a child or grandchild
• The death or incapacity of someone named in your plan
• Purchasing or selling significant assets
• Starting or selling a business
• Moving to another state

Even if nothing major has changed, reviewing your estate plan every few years can help ensure it still reflects your wishes.

Don't Avoid the Difficult Conversations

Many estate planning problems begin with conversations that never happened.

If you have concerns about family dynamics, blended families, unequal inheritances, or a beneficiary's ability to manage money, share those concerns with your attorney.

Estate planning is not one size fits all. The more your attorney understands about your family and your goals, the better they can recommend strategies that fit your situation.

It is also important to carefully choose the people who will serve as your personal representative, trustee, financial agent, or healthcare agent. Rather than selecting someone out of obligation or because they are the oldest child, choose individuals who are responsible, organized, and willing to carry out your wishes.

Start Now, Improve Later

Many people delay estate planning because they want everything to be perfect before they begin.

The reality is that a good estate plan today is far better than waiting years for the "perfect" plan.

Estate planning is an ongoing process. Documents can be updated as your family grows, your assets change, and your goals evolve.

If it has been several years since you reviewed your estate plan or if you have never created one, now is a great time to get started.

The attorneys at Wagner Oehler can help you create a plan that reflects your wishes today while giving you the flexibility to make changes as life changes.

Take the Next Step

If you’re ready to start being proactive about your estate plan and want guidance tailored to your family, assets, and goals, contact Wagner Oehler, Ltd. to get started.

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