Common Estate Planning Mistakes (And How to Avoid Them)
Estate planning can be tricky, and it’s easy to make mistakes. Here are some common pitfalls and tips on how to avoid them.
Updating Your Will
One of the most common mistakes is not updating your will. Life changes—such as marriage, divorce, the birth of a child, or the death of a beneficiary—should prompt a review and update of your will. Failing to update your will after significant life events can lead to unintended consequences. In addition, beneficiary forms for your 401K, life insurance, and bank accounts should be updated as life changes.
Overlooking Digital Assets
Another frequent mistake is overlooking digital assets. Your digital assets can include everything from social media accounts to online banking and cryptocurrency. Make a list of your digital assets and include instructions for managing them in your estate plan. McPhillips Law provides an Emergency Planning Toolkit to all clients that includes a place to document your digital asset information.
Lack of Understanding of State Laws
Failing to understand state laws is another pitfall. Estate laws vary by state, so ensure your plan complies with the laws in your state. This can be particularly important if you own property in multiple states or have recently moved. Being aware of what will happen with respect to property owned in other states when you pass away is crucial to deciding whether that property should be held in trust to avoid what’s called “ancillary probate” proceedings in multiple states.
Start Your Planning Today
Take the first step towards peace of mind by booking a Peace of Mind Planning Session with Attorney Candice McPhillips. This is a 1-hour Zoom meeting where we will review your questionnaire, answer your questions, discuss your options, and review my unique flat fee packages! If we decide we’re a good fit to work together, we’ll take the next steps. And if not, that’s fine too! Book your Peace of Mind Planning Session HERE. Mention this blog and I’ll waive the $450 session fee!
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This article is not intended to provide legal advice or opinion and should not be relied on as such. Legal advice can only be provided to clients of McPhillips Law in response to a specific fact situation.
