As most people know, making an estate plan goes far beyond creating a last will and testament. Estate plans should involve a surprisingly large variety of situations, many of which can occur before a death. Experts have noted some people making the same mistakes over and over again and you can gain from their experience. Read on to find out about some common estate planning issues and how to avoid them.
1. Don't forget about a will – Everyone needs a will. Wills have been around for a very long time for a good reason. If you die without a valid will, the state could take over your estate and use inheritance laws to distribute your property. Even if you have other estate plans in place, wills are capable of performing legal tasks that no other estate tool can.
2. Don't just stop at a will – On the other hand, a will is not the last word in estate planning. Alongside a will, consider the usefulness of a trust. Trusts are a handy way to pass property to others without the asset having to go through the probate process. Speak to an estate lawyer to find out how a trust can go further than a will in many cases.
3. Plan ahead for infirmary – People are living longer but many end up incapacitated before they pass away. A good estate plan can encompass end-of-life planning as well as dictating what happens after death. This might include designating a power of attorney to cope with financial matters, a long-term health care facility plan, a living will, healthcare provisions, and more.
4. Keep things simple – It makes no sense to create a wonderful estate plan that you don't understand. Make your estate lawyer responsible for ensuring that you understand every aspect of your plan. If you don't understand it, how can your loved ones? All estate provisions have plain-language explanations so see to it that you get one.
5. Make it a point to update your plans often – Revisit your estate plan at least every year. Major life events like births, deaths, marriages, divorces, adoptions, sales of property, and more all call for an adjustment to your plans. Additionally, tax laws can change every year so speak to your estate lawyer and make changes as needed so that the tax burden will be lessened.
To find out more, speak to a probate lawyer.
