Why do legal mistakes happen? It’s because people are not educated on legal matters. When it comes to legal estate planning, there are a lot of pitfalls that people can fall into.
The legal aspects of estate planning are complicated and vary from state to state, so it’s essential to find an attorney who specializes in these matters if you want your legal documents executed correctly.
This blog post will cover some common mistakes when doing legal estate planning and how you can avoid them to make your family feel secure in the future.
Let’s get started.
- Planning Failure
Everyone should have an estate plan, but not everyone does. One of the biggest mistakes people can make is failing to create legal documentation that helps manage their property and assets after they die. For example, if you don’t have a legal will or trust document created before you pass away, then your state laws may determine where your assets go and how they are managed.
- No Discussion With Friends And Family
It’s an unfortunate fact of life that people are less likely to complete legal tasks when they involve family or friends, including estate planning. If your loved ones have power of attorney over your affairs, you may feel uncomfortable discussing all the details with them because it can be easy for things to go wrong without meaning to.
- Having Single Beneficiary
One of the most significant legal estate planning mistakes people make is having a single beneficiary. Having one person to benefit from your inheritance, whether that’s cash or property, can cause significant problems for your loved one if they die before you do.
Avoiding The Power Of Attorney
The power of attorney legal document grants another person the legal authority to make decisions on your behalf. It is often used in conjunction with a will, but it can be a problematic and dangerous situation for you or your family members if not drafted carefully. If there is no one else you trust enough to handle such a necessary decision-making process, then do not use this legal instrument at all.
- Ignoring the Final Arrangements
The legal process of a will involves filing and lawful processing. This legal process can be time-consuming, tedious, and expensive, which is why it’s crucial to have an estate planning attorney by your side to help you plan out each step so that nothing falls through the cracks or gets overlooked.
One pervasive problem with this legal process is not taking care of all those final arrangements before they are needed, such as getting your funeral planned, having medical power-of-attorney forms filled out in case there any unforeseen circumstances arise, etc.
- Not Hiring Guardian For Your Children
One legal estate planning mistake often made is not hiring a guardian to care for your minor children in the event of both parents’ death. When you put together an estate plan, name someone responsible enough to take over legal custody of any minors if something happens to their parents. A court would likely appoint someone, but that person might have little or no relationship with your kids and could create more legal problems than necessary.
Getting Too Specific
When estate planning, it is essential to be as general and broad when possible. This will help reduce legal hassles in the future if your plans change or you come into some unanticipated inheritance/gift money later on.
The Bottom Line
If you are interested in legal estate planning, it is vital to understand common mistakes when creating an estate plan. If you want your wishes respected after death or avoid hefty legal costs and taxes, then take the time to understand what legal steps need to be taken now. Estate planning can appear very complicated, with lots of legal jargon that most people don’t fully comprehend.