Imagine if your spouse could not access your money during a medical crisis, or your business partner could not legally keep things running if you suddenly died. What if your children thought your silence about who gets your belongings meant you did not care?
These kinds of “what if” situations highlight common estate planning mistakes. When these problems actually happen, it is often painful for families who thought they had more time to sort things out. The good news is that identifying these possible problems early allows you to develop strategies for what lies ahead.
Common mistakes
Here are some frequent mistakes individuals make when crafting an estate plan:
- Not creating a will: Dying without a will means Georgia’s intestacy laws dictate asset distribution. This distribution method might not align with your personal wishes.
- Using do-it-yourself (DIY) plans: Generic online forms may not address your unique situation or comply with current Georgia law. These templates often miss important details.
- Failing to update your plan: As your life evolves, it is essential to reassess and adjust your plans accordingly. These events can include having kids, marriage, divorce and major financial disruptions. Laws also change over time, impacting existing plans.
- Incorrect beneficiary designations: Naming beneficiaries on accounts such as life insurance or retirement plans is vital. These designations usually take precedence over the directions in a will.
- Overlooking incapacity planning: An estate plan should include documents for managing your affairs if you become unable to make decisions. This includes financial powers of attorney and advance directives for healthcare.
Addressing these common errors is a crucial step toward a secure plan. At this stage, the guidance of a legal professional becomes invaluable.
Creating an effective estate plan
Start by inventorying all your assets, including real estate, investments, retirement accounts and personal property. Decide who will receive these assets and under what circumstances. Setting up a trust may be worth considering if you have minor children or if you wish to reduce the complications associated with the probate process.
While basic information about estate planning is widely available, consulting an attorney specialized in estate law remains essential. Estate planning attorneys stay current on legal changes, understand tax implications and help customize solutions for your unique situation. The investment in professional legal guidance now can save your loved ones substantial money, time and stress later.