If you have a family or significant assets, estate planning is essential no matter your age and health. But simply having a document in place often isn’t enough, and there are several common mistakes people make when drafting their papers. Working with a seasoned attorney will help you avoid these dangerous pitfalls; in the meantime, here are a few of the most frequent missteps to be aware of.

Top Estate Planning Missteps to Avoid

1. Excluding a Trust

If you have children, you want to leave them your assets, so they have the best possible start in life. But simply setting aside money without conditions for kids, teens, or young adults almost guarantees it will be spent unwisely. Establishing a trust during estate planning will ensure your gifts do the job they’re intended to do, providing for your loved ones in the long term.

2. Not Funding the Trust

A trust can’t do its job without adequate funding. When you set up your documents, work with an attorney to ensure there are enough resources in place. As you continue to make financial decisions, such as purchasing life insurance or refinancing a home, remember to keep them coordinated with your will and trust.

3. Forgetting to Coordinate with Family Members

Your parents, spouse, and other family members may have their own estate planning measures in place to provide for your mutual loved ones. The more information you have about their wills, the better prepared you’ll be to make informed choices about your own.

4. Failing to Update Your Plan

As mentioned above, some financial changes can have a dramatic effect on your will. Whenever you buy or sell property, receive significant assets, or otherwise experience changes, you should update your will to reflect your new situation.

5. Doing Nothing

Far worse than an outdated document is no will at all. While your state has laws for distributing estates in the absence of a plan, these provisions are unlikely to be a perfect fit for your situation and include no protections like trusts.

When it comes to estate planning, it’s easy to make mistakes—especially if you’re trying to ignore the question in the first place. Be proactive and get professional advice to ensure your family will be cared for after your death.

Ensure your estate is in order and will be divided the way you intend. Wills and Trusts Hawaii serves Honolulu and all of Oahu with compassionate, qualified estate planning services and resources. Their professional assessments and informed advice will protect your family long after you are gone. To get in touch and schedule a consultation with a knowledgeable lawyer, call (808) 792-8777 or reach out online.