If someone were to ask me what the most common mistake is you can make in estate planning, my answer would be simple. The most common mistake is simply not getting around to planning at all. Remember the old adage "failing to plan is like planning to fail"? Well, this is particularly true in the case of estate planning.
The best way to protect you and your loved ones, is to make the time NOW to plan your future estate. Both you and your loved ones deserve to have a secure future. Nothing is more frustrating or frightening to family members than having to guess at what they believe your wishes would have been. You can take the guess work out of the equation by following these easy pointers:
1. Make a Will. Everyone needs one. If you do not draft a will, the state will decide what happens to your property after you die. A will allows you to designate to whom and how, you want your property to pass. Whether you have a minimal, modest or large estate, you will want to designate the person you wish to wrap up your business after you have passed away. This person is called the executor of your estate. Additionally, your family will already be dealing with the grief of your passing, you do not want to compound that grief by failing to leave any directions about how you want your personal property distributed. If you want your wedding ring to go to your granddaughter, or your gold watch to pass to your son -- let them know in your will.
2. Keep Your Beneficiary Designations Current. I know I have written about this before, but I cannot say it enough -- in many cases the beneficiary designation will trump what is written in your will or trust, so make sure your beneficiary designations are consistent with your other estate planning documents.
3. Execute Powers of Attorney to Plan for Incapacity. Who will take care of things for you, if you are unable to speak for yourself? A Durable Power of Attorney and a Medical Power of Attorney can protect both you and your family's interests. A Durable Power of Attorney allows the person you choose to make legal and financial decisions on your behalf. A Medical Power of Attorney allows you to state in advance the kind of medical care you would want in the event you become incapacitated, and further allows you to indicate the person you would want to make medical decisions on your behalf if you are unable to speak for yourself. If you do not have these documents, and attorney and the court will need to become involved at the time of your incapacity, which is not only time-consuming, but can be a real financial burden for your family.
Make the time today to see a professional about your future. If you do not already have a relationship with a qualified estate planning attorney, please contact Amesbury & Schutt at (702)735-4377. We would love to meet with you and talk to you about your planning options.
