Getting your estate plan ready to go is critically important. It gets you ready for the future and protects your beneficiaries. Even those that create a plan often fall victim to common mistakes. These can leave unintended holes in your estate plan, especially if you try to put it together online or with an inexperienced attorney. A comprehensive plan protects your assets, your future, and your loved ones.
At Edward O. Moody, P.A., our estate planning attorneys are ready to help. Our team works with you to create a personalized estate plan that fits your needs and wishes.
1. Not Having an Estate Plan at All
One of the biggest mistakes Arkansas families make is assuming they don’t need an estate plan. Some people think they’re too young or don’t own enough yet. Some think the law just passes things automatically the way they want. While there are laws that pass things without a will, it creates a time-consuming and complicated process for your loved ones after you pass. Also, things may not pass the way you want them to.
Without a plan, families often face:
- Lengthy probate proceedings
- Higher legal costs
- Disputes among relatives
- Loss of control over guardianship decisions for minor children
2. Relying Only on a Will
A will is important, but it doesn’t do everything. Families should also use other estate planning tools to accomplish all of their goals.
A comprehensive estate plan often includes:
- A revocable living trust to avoid probate
- Beneficiary designations for financial accounts
- Powers of attorney
- Advance directives that say what you want medically
3. Failing to Update Documents After Major Life Changes
Many people create an estate plan, and then never update it. But when things change, your estate plan should change too. If you got married, divorced, had a child, or other big life even you want to make sure you update your estate plan.
If you don’t, common issues include:
- Ex-spouses remaining as beneficiaries
- Outdated guardianship choices
- Assets unintentionally going to the wrong person
- Conflicts between a will and beneficiary designations
Try to review your plan after any big life event, or every 3-5 years to stay on top of it.
4. Not Using Beneficiary Designations Correctly
A number of assets pass outside of the will. This might include:
- Life insurance
- Retirement accounts
- Payable on death accounts
- Transfer on death accounts
Forgetting to update designations could mean someone gets things you never wanted them to get.
5. Overlooking the Need for Powers of Attorney
Powers of attorney help protect you during life as well. Naming someone you trust to handle medical and financial decisions when you can’t is critical.
Without powers of attorney, families may need to pursue guardianship through the courts, which can be:
- Time-consuming
- Expensive
- Emotionally stressful
6. Not Planning for Long-Term Care
The cost of long-term care continues to skyrocket. Don’t underestimate the cost of in-home care, assisted living, or nursing homes. If you don’t plan for it, families could be forced to spend down all of your assets to qualify for care.
7. Choosing the Wrong Executor or Trustee
Who you pick to manage your estate matters a lot. A poor choice can lead to:
- Delays in administration
- Mishandling of assets
- Family conflict
- Legal disputes
Selecting a capable, organized, and trustworthy executor or trustee helps ensure your plan is carried out smoothly.
Avoid Common Mistakes By Working With an Experienced Arkansas Estate Planning Lawyer
You deserve a comprehensive and personalized plan that works for you. An estate plan covers all of your needs when done correctly.Let the dedicated Arkansas estate planning attorneys at Edward O. Moody, P.A. review your case. Contact us today for a consultation.