10 Estate Planning Mistakes to Avoid
Estate planning is essential for every Dallas resident, regardless of their age or the value of their assets. After all, having a properly drafted plan in place can protect your loved ones and ensure your wishes are fulfilled in the future.
However, despite understanding the significance of estate planning, many people fail to prepare a comprehensive estate plan that suits their needs. By learning about the errors others have made, you can prevent this outcome and enjoy the peace of knowing that there will be no confusion about how you’d like matters to be handled. To that end, the legal team at Schultz and Kellar has compiled a list of ten avoidable estate planning mistakes. Read on, and reach out to our Dallas estate plan law firm for more information.
Mistake #1: Not Making an Estate Plan
Failing to draft even a basic estate plan at all is perhaps the biggest mistake anyone could make. Without a will, Texas state laws will govern the distribution of your assets when you pass away. And if you don’t do any estate planning, your loved ones may be in a difficult position if you become incapacitated.
Mistake #2: Not Updating Your Estate Plan
You may have an estate plan, but how accurately does it reflect your current wishes? If you’ve experienced any major life events -- like marriage, divorce or the birth of a child – you need to make sure that the beneficiary designations are still accurate. An update may also be a must if you’ve acquired new assets since you drafted the plan.
Mistake #3: Not Planning for Future Incapacity
Many Dallas residents would prefer not to think about the possibility of becoming physically or mentally incapacitated, but these issues need to be addressed in your estate plan. By planning for any future need for long-term care, you can make your wishes known and implement strategies to preserve your legacy.
Mistake #4: Not Naming Contingent Beneficiaries
People engaged in estate planning typically put considerable thought into beneficiary designations, but many make the mistake of naming just one person for each particular asset. If you don’t include fallback beneficiaries and the person you name passes away before you, the state of Texas will get to determine who is next in line.
Mistake #5: Not Appointing the Right Executor
When making an estate plan, you have to designate someone to act as your executor, or personal representative. They’ll be handling your affairs upon your death, so the person you name needs to be up to the task. Given the nature of the proceedings involved, choosing the wrong person can lead to feuds and legal battles.
Mistake #6: Not Funding Your Living Trust
A revocable living trust is a common component of a comprehensive estate plan. With one, you can retain control over your assets now and guide their distribution upon your death. But your property must be titled to the trust, or it will have to go through probate. And the fact is, many people in Dallas fail to complete the funding process.
Mistake #7: Not Protecting Your Digital Assets
These days, the online and virtual worlds are becoming increasingly important, and quite a few individuals in Texas hold some form of digital assets. If you have any online bank accounts, photos saved in the cloud, digital investments, domain names or other online files, records or property, don’t forget to factor it into your estate planning.
Mistake #8: Not Considering Financial Planning
When in the midst of estate planning, Dallas residents don’t always remember to consider their financial future. Having sufficient income and assets to meet your lifetime needs is crucial, and with proper financial planning and a well-crafted estate plan, you can have that and still have wealth to pass on to your chosen beneficiaries.
Mistake #9: Not Discussing Your Estate Plan
Having a conversation about your estate plan with those closest to you can be beneficial, as that ensures everyone will know what to expect. Make sure to talk to the executor of your will and, if applicable, the successor trustee of your living trust. It there’s a lack of communication, there may be problems later on.
Mistake #10: Not Consulting with an Estate Lawyer
Estate planning is far from simple, and the more thorough your plans, the easier everything will be on your loved ones. Working with an experienced Dallas estate lawyer can ensure that your plan is strong enough to stand up to legal challenges. Forgo expert help, and your family may face extra costs and hassles upon your death.
Schultz and Kellar is Here to Help You Avoid Estate Planning Mistakes
In addition to those we listed above, people commonly make other estate planning mistakes, such as forgetting to consider estate tax liability or failing to include their preferences for end-of-life care. To make sure you don’t make any avoidable errors in your estate planning, turn to the legal experts at Schultz and Kellar.
We not only have years of experience in estate planning -- we’re one of the few law firms in the Dallas-Fort Worth metroplex area with a team that includes highly skilled financial advisors. Call on us, and you’ll have an estate plan you can count on.
For details on our estate planning services for residents of Dallas, Texas, or to schedule a consultation with an accomplished estate lawyer, contact us today.
