When it comes to protecting your family, putting a comprehensive estate plan in place is critical. Unfortunately, many people delay this important task or avoid it altogether. Those who do go through the estate planning process may find themselves making one of many common mistakes, especially when they don’t have the help of an experienced estate planning attorney. Keep reading below to learn more about the common estate planning mistakes that you should avoid.
Mistake #1: Not Having an Estate Plan
One of the biggest mistakes that people make when it comes to estate planning is not having a plan in place at all. Not having an estate plan can lead to many complications, including:
- Additional cost for your family
- Lengthy probate process
- Assets being distributed according to the law instead of your wishes
You can avoid this mistake by working with an estate planning attorney based in Oklahoma City to create a plan that fits your needs and helps you accomplish your goals.
Mistake #2: Thinking That a Simple Will Is Enough
While a will is often a critical part of your overall estate plan, a will alone is often not enough to fully meet your needs. When using only a will, your estate will be required to go through the probate process in Oklahoma. This means additional time and money, and it also means that the details of your estate might become public record. A revocable living trust is often a much better option for many families.
Mistake #3: Never Revisiting or Updating Your Estate Plan
Estate planning is never a “one and done” activity. A thorough estate plan may need to change as your life circumstances change. You should regularly revisit your plan to ensure that it is still the right fit for your situation and your goals. A common recommendation is to revisit and update your estate plan every 3 to 5 years or every time you experience a major life event, such as:
- Marriage
- Divorce
- Birth or adoption of a child
- Death of a family member
- Substantial change in financial position
- Acquisition of major assets, like a home or business
If you fail to keep your estate plan updated, it might not serve its intended purpose when the time comes.
Mistake #4: Forgetting About Incapacity Planning
An estate plan is not just about what happens after your death. It should also include plans that address what happens if you were to become incapacitated. You should never forget to complete important documents like a:
- Durable power of attorney
- Advance health care directive
These documents allow others to make financial or medical decisions on your behalf should you be unable to do so on your own. This can keep your family from needing to make tough decisions during an already difficult time.
Mistake #5: Failing to Fund Your Trust
Trusts are powerful tools used in estate planning, but they only gain that power when used properly. For a trust to work properly, you must place assets into the trust. Many people create a trust but never move any assets into the trust. You can avoid this mistake by working with a specialized Oklahoma City trust administration lawyer to transfer property into the trust as soon as it is created and continuing to move new property into the trust as it is acquired.