Five Biggest Estate Planning Mistakes

Premier Palm Beach Estate Planning Attorneys Help Clients Avoid the Five Biggest Estate Planning Mistakes

A well-designed estate plan can facilitate the orderly transfer of your assets and wealth after your death

You have probably thought about how you want the assets you worked hard to accumulate during your life to be distributed to family members after your death. An estate plan provides an orderly method for passing your wealth on to your heirs, but a poorly designed plan for asset distribution can do more harm than good. Here are four common estate planning mistakes.

Mistake number one: Thinking you don’t need an estate plan

Too many people believe, incorrectly, that estate planning is something that only wealthy individuals need to worry about. If you own a home, have a retirement fund at work, or have a preference about who should get your stamp collection when you die, then you should be thinking about an estate plan.

An estate plan allows you to take full advantage of the tax laws to minimize the burden on your estate. It also avoids family squabbles over who gets which item from an estate by putting you in charge of making those important decisions.

Mistake number two: Thinking without doing

Deciding that an estate plan can be a benefit to you is an important step, but too many people never progress from thoughts to deeds. Equally as bad is the belief that only older people need an estate plan. The inevitability and unpredictability of death could leave your financial and personal affairs in disarray regardless of your age. An estate plan is something you should do as soon as you hit important milestones like beginning a career or starting a family. Estate plans can always be changed to accommodate personal and financial events occurring during your life.

Mistake number three: Making poor decisions when choosing an executor or trustee

Assuming you get past the first two mistakes most people make concerning estate planning and have met with an experienced and knowledgeable estate planning attorney, mistake number three results from letting your heart cloud your better judgment. All too often, people spend hours with a lawyer to achieve a carefully considered and skillfully drafted estate plan that includes an executor or trustee chosen on the basis of relationship instead of ability.

The role of executors and trustees is to manage the assets of your estate while carrying out the wishes you express in the will or trust document. The individuals you choose for these positions should be chosen for their ability to invest and manage the assets and fulfill their duties honestly and objectively. Choosing your spouse or one of your children to fill these positions might not be the best decision unless you are confident they possess the ability to do the job and will not be influenced by their personal interest in your estate.

Mistake number four: Making death the focus of your estate plan

Estate planning is more than just planning for the distribution of your wealth after you die. According to the Social Security Administration, almost 2.5 million people filed applications for disability payments in 2015. A long-term disability brings with it personal and financial challenges that your estate plan can address. Some of those challenges may include:

• Medical Decisions: Deciding who shall have the authority to make decisions about your medical care if you are unable to do so can be part of an estate plan. Health care surrogate designations of a person capable of making health care decisions can bring you peace of mind in knowing your wishes will be followed.
• Financial and business decisions: The inclusion of a power of attorney as part of your estate plan ensures that someone in whom you have confidence is authorized to make business and financial decisions if you cannot do so.
• Care of your children: Provisions for the guardianship and care of your minor children in the event you are temporarily or permanently disabled may be made part of your estate plan.

Avoid costly mistakes with guidance from experienced Palm Beach estate planning lawyers

Rely on the skilled Palm Beach estate planning attorneys at Kitroser Lewis & Mighdoll for professional guidance and legal advice and avoid making estate planning mistakes. Call us today at 561-721-0600 to schedule a free consultation or contact us online.