Estate planning is often a complex process involving a delicate interplay between your personal preferences, state law, and the tax code. Unfortunately, even minor errors and oversights will have dramatic consequences for the ones you leave behind, potentially invalidating entire elements of your plan or triggering legal battles. Below are some of the most common mistakes to avoid when planning your estate.

4 Common Estate Planning Mistakes to Avoid

1. Failing to Name Contingent Beneficiaries

If the beneficiary named on your life insurance or retirement accounts passes away before you, the distribution of the proceeds will likely happen according to your state’s intestate laws. Not only will this likely have results you didn’t intend, but it will also have serious tax consequences that may cost your beneficiaries thousands of dollars.

2. Not Updating the Estate Plan After Major Life Events

Marriage, divorce, and the birth of a child are all major life events that will likely change your priorities and your legal obligations. After any significant change to your family status or finances, speak with an estate planning attorney to update your documents.

3. Using Automated Tools

Many websites claim to make estate planning simple through an automated process that generates documents for you. While the wills, powers of attorney, and other materials created with these tools may be legally valid, they are not always the best for you. Instead, having a lawyer draw up the documents and tailor them to your situation is the safest method.

4. Waiting too Long

Considering your mortality is always uncomfortable, and many people assume they’ll have more time to plan their estate. Unfortunately, if the unexpected does occur, your assets will likely be divided according to your state laws, without regard to the quality of your actual relationships or your own verbally expressed wishes. Planning your estate is the only way to ensure that your intentions regarding your belongings and loved ones are respected after you’re gone.
 

With over 50 years of combined legal experience, the legal team at Scott & Heenan LLC have helped countless families throughout Platteville, WI navigate the complexities of the estate planning process. Their attorneys understand how difficult these decisions are, and will take the time to help ensure that your estate plan accurately reflects your wishes. Visit their website for more on their broad range of legal services, or call (608) 348-9506 to schedule a consultation today.