When creating an estate plan, there are many estate planning mistakes you could make that could ultimately lead to complications later on. Estate planning is a critical process that helps you protect your assets and ensure that they go to your loved ones after you have passed away. Even though many individuals in Las Vegas create an estate plan, they may fall victim to these common estate planning mistakes.
To ensure that you have correctly created your estate plan, you should consider hiring an estate planning attorney. At Morris Estate Planning Attorneys, our collective years of experience have helped us guide our clients throughout this process to avoid estate planning issues. Keep reading to find out what mistakes you need to avoid to protect your last wishes better.
1. Not Making Updates
One of the many estate planning mistakes to avoid is creating your estate plan and leaving it at that. The reality is that there are many situations that could have an impact on your estate plan, such as changes to your situation or an addition or decrease in your assets.
It is helpful to think of your estate plan as a living and breathing document. As time goes on, there will be things that can impact the details of your estate plan, making it necessary to revisit and revise it as needed. For instance, there may have been a death in the family, or you may have gotten married and need to make changes to your beneficiaries.
2. Forgetting to Name Beneficiaries
Do you want to know how to avoid beneficiary mistakes in estate planning? Naming beneficiaries is one of the most important aspects of creating your estate plan. The beneficiaries are the individuals who will ultimately receive your assets after you have passed away.
Naming beneficiaries ensures that your final wishes will be upheld and assets will be distributed correctly. Not only does this uphold your final wishes, but it can also help eliminate any disputes among your loved ones.
An estate planning attorney can help you ensure you have named all of your desired beneficiaries and are updating it as necessary. For instance, if you have a grandchild who was recently born, you would want to update your estate plan to name them as a beneficiary.
3. Not Including All of Your Assets
A common mistake individuals can make when creating their estate plan is not including all of their assets. Anything that you own that could be a value is something that you should consider as an asset and should include in your estate plan. For example, vehicles, land, investments, and properties are all valuable assets.
Some examples of larger assets that you may not think of are your retirement accounts and life insurance policies. These assets need to have a designated beneficiary so that they go to the right people. If you have a trust in place, you also need to ensure you are funding it.
Failing to include all of your assets in your estate plan can lead to complications after your death.
Other Estate Planning Mistakes to Keep in Mind
Now that we have discussed the most significant estate planning mistakes to avoid, there are some additional things to keep in mind, such as:
- Not hiring an attorney: You should never attempt to create an estate plan without hiring an estate planning attorney in Henderson, NV. An attorney will have the experience necessary to draw up an estate plan that is accurate, legally binding, and free of mistakes.
- Choosing the wrong executor: An executor is the person who will handle your estate affairs once you have passed away. You need to be very careful when choosing the executor, as it shouldn’t be someone who is too emotionally involved or has a financial incentive.
- Limiting your beneficiaries: Depending on your situation, you may only have one or two beneficiaries you want included in your estate plan. You should always include contingent beneficiaries in case something happens and the named beneficiaries are not available. Taking this extra step ensures your assets will still go to the right people.
- Forgetting about taxes: There are federal estate taxes you will need to consider when creating your estate plan. Taking this into consideration during the planning process ensures that your beneficiaries will not have to go through a time-consuming tax process after you have passed away.
- Not planning for disabilities: Your estate plan is also the best place to plan for future disabilities or illnesses. For instance, in your estate plan, you can name the person who will make sure the estate plan is followed and will advocate on your behalf.
- Forgetting digital assets: With so much technology available today, another common estate planning mistake people make is forgetting about digital assets. After you have passed away, digital assets will also need to be divided among your beneficiaries. Examples of digital assets include emails, social media accounts, online banking, cryptocurrency, photos, etc.
- Naming a minor as a beneficiary: In many estate plans, you will probably name a minor as one of your beneficiaries if you have a younger child or a grandchild. If you do this, you need to make sure you appoint a guardian who will manage those funds if you pass away while they are still a minor. If you fail to do this, it can result in significant legal fees and wasted time in assigning a trustee to manage the minor’s estate after your death.
Contact a Dependable Estate Planning Attorney at Morris Estate Planning Attorneys
Taking the necessary steps to create your estate plan is crucial for planning for the future and making your last wishes known. However, there are many estate planning mistakes you will want to be aware of so that your estate plan is thorough and includes everything that is important to you.
At Morris Estate Planning Attorneys, we are dedicated to providing our clients with the best guidance when creating your estate plan. Contact us today at 702-471-0990 to schedule a meeting with one of our experienced estate planning attorneys in NV.