The Top 7 Mistakes People Make in Estate Planning and How to Avoid Them

Your estate plan does not have to be perfect. There is probably no such thing as a perfect estate plan. Glaring errors in estate planning can make life more difficult for your heirs, though. Most estate planning mistakes simply cause delays or preventable expenses during probate, but the worst ones can cause long-lasting family discord. For guidance on crafting your estate plan, contact a Bronx estate planning lawyer.

Assuming That You Don’t Need a Will

You might think that you’re too young, too healthy, or too poor to need a will, but you need one. The purpose of a will is not just to transfer property to your heirs. It is also to prevent disputes about the final disposition of your remains and about who should act as personal representative of your estate.

Focusing on Money but Not on Health

If you have written a will, it only means that you addressed what will happen to your property after you die. You did not address the issue of people caring for you in your own age. You also need a power of attorney and a medical advance directive. You should also take a realistic view of how you will pay for your long-term care.

Not Updating Your Estate Plan

No matter how thorough your estate planning documents are, an estate plan is never finished. It is important to update your estate plan when something big changes, like the birth of a grandchild or the death of a beneficiary of your will, or even when you inherit valuable property from a family member.

Being a Noncommittal Snowbird

If, ever since you retired, you spend half the year in New York and half the year in Florida, you are living the dream. You are free to enjoy the best of both worlds. Only one state can be your legal domicile, the state where the courts have jurisdiction to administer the probate of your estate. If you want New York to be your domicile, register to vote here and get a New York driver’s license.

Skimping on Insurance

Medicare makes your healthcare costs less expensive than they were when you were working, but its long-term care benefits are meager. You can get Medicaid nursing home care, but being a Medicaid nursing home beneficiary is an austere existence. Even if you can’t afford whole life insurance or conventional long-term care insurance, you should buy a hybrid life insurance policy.

Not Capitalizing on Non-Probate Assets

If you are wealthy, your estate planning lawyer will encourage you to set up a trust to transfer your property more quickly and protect your assets from creditors. Even if the value of your property is modest, probate is still simpler the lower the value of your estate. Transfer on death provisions in your bank accounts can make the money pass to your surviving relatives more quickly.

Trying to Micromanage From Beyond the Grave

Attaching conditions to the provisions of your will or trust instrument is not a good look. You might be tempted to say that your son will inherit one third of your estate, but only if he dumps What’s Her Face, but do you really want to be that petty?

Schedule a Confidential Consultation With a Bronx Estate Planning Attorney

An estate planning lawyer can help you draft estate planning documents.  Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.

Source:

codes.findlaw.com/ny/estates-powers-and-trusts-law/ept-sect-5-1-1-a.html