Common Estate Planning Mistakes to Avoid
If you are in need of assistance when creating your estate plan, our Oak Brook, IL estate planning lawyer is here to help you. Although many people may procrastinate when developing an estate plan, believing they have time to plan for the future, it’s essential not to delay for several reasons. Putting off the process can be highly problematic for several reasons. For example, without a plan, the testator loses their ability to have their wishes carried out, and family, amongst their grief, will be left to decipher what comes next. It’s important to note that even those who develop an estate plan are susceptible to making mistakes during the process. Because of this, it’s important to consider speaking with Bott & Associates, LTD, to avoid the many pitfalls of estate planning.
- Making Mistakes with Beneficiary Designations
When mapping out your wishes, one of the most important aspects of estate planning is making beneficiary designations. There is far more involved than just choosing a beneficiary for assets. Testators must consider several factors when doing so. It’s vital to ensure the person of your choosing receives the assets allocated to them. To ensure this, it’s essential to indicate your wishes by ensuring that beneficiaries are named on accounts such as 401ks, life insurance policies, and payable upon death accounts. An Oak Brook estate planning lawyer will share that, in addition, you must not only communicate your wishes to prospective beneficiaries but also name backups in case the person initially named passes away. Lastly, it’s crucial to have a plan for minors who may be designated as beneficiaries by having a guardianship plan and trust in place to safeguard their inheritance.
- Not Planning for Minors
When the testator has minor children to consider, it’s essential to make a clear plan that involves several important variables. Minor children need to have a guardian assigned to care for them (don’t forget to name backups) and a plan for how they will be financially cared for until they become adults. An estate plan can carefully outline how a child will be cared for, and a trust can help determine how their inheritance should be distributed as they reach adulthood. Failure to carefully plan for minors can be catastrophic for several reasons; with no one assigned to care for them, families may fight over guardianship, which, amidst grief, can make the loss of a loved one especially difficult. Also, note that without a responsible person to oversee a child’s inheritance, it’s possible that the funds designated for minor children could be squandered.
- Creating Your Own Estate Plan
It can be tempting to consider developing an estate plan with the many estate planning tools available on the market today. While this may seem like a more affordable option over the services that a lawyer can provide, it’s not recommended. There are several dangers associated with using an automated estate planning tool, including:
- Automated software may not take into account state laws
- There is not a professional to ensure that all avenues are considered
- There is no professional to advise on things you may not have considered
- The estate plan may not protect assets from probate
- In the long run, a DIY estate planning tool may be more costly as the will and estate plan may be out of date and irrelevant when the time comes
Contact Our Oak Brook Estate Planning Lawyer Today
While this is not an exhaustive list of mistakes that can be made, there is a vast array of problems that a testator could make. Whether they have forgotten to update their plan or put off developing an estate plan altogether, having a lawyer available for Oak Brook estate planning is imperative to developing a plan for the future that leaves nothing up for consideration. Bott & Associates, LTD have an experienced team of lawyers who can help their clients put together a plan that is well thought out and provides peace of mind in knowing that there is a plan for the future.