People often put off the thought of planning for their future or their death, as it can be extremely daunting and overwhelming to handle. However, it is one of the most important things a person can do for themselves. It can be accomplished by creating an estate plan that consists of an individual’s future plans for their life and it’s end. This plan is filled with crucial documents and information that should be created with caution. There are many parts to an estate plan, which can make it easy to make a mistake throughout the process. The following are common mistakes that can be made and how they should be avoided:
- Not hiring an estate planning attorney for assistance. There are many ways to set up an estate plan, including on your own. However, an attorney can guide you through this to ensure you are setting it up in a way that benefits you and your loved ones when it is time. Mistakes can result in a document becoming void, which can create further difficulties in an already hard situation. An estate planning attorney should also be used to change any documents that need to be updated.
- Not updating your plan. As life changes, so should your estate plan. This can include adjusting any gains or losses, such as loved ones or financially. This plan should be reviewed approximately every five years.
- Not understanding your will. A will controls all of your assets that are in your name. It is important to know that this does not include assets that are held jointly with another party.
- Not creating a revocable living trust. Having assets in this type of trust can save your loved ones time and money by avoiding the process of probate after your life is over.
- Not transferring assets to the living trust. This makes sure your assets are owned by the trust.
- Not having a living will or discussing your end of life wishes with loved ones. Doing so ensures these desires can be carried out when the time comes.
- Not considering the cost of long-term care. An estate plan should include how you want your assets to be protected from funding long-term care. If you need in-home care or to live in a nursing home one day, your assets could go towards the cost of this care. In order to prevent this from happening, include in your plan how you want to protect these assets.
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Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.