Estate Planning Pitfalls - Let's Check Estate Planning Off Your List!

Ruth C. Rhodes • March 31, 2022

This past year has taught us many valuable life lessons. Estate planning has been on many “to do lists”. Making the decision to finally check estate planning off your list is a great way to start the new year. Understanding the most common estate planning pitfalls will help you in your planning or revision of prior estate planning. Let’s start with the top 3 estate planning pitfalls to name just a few. 


First, life events are top on the list. Some of the typical life events that can affect your estate plan are the passing of a loved one, moving, marriage, divorce, birth of a child or grandchild or children becoming an adult. You want to make sure and customize your Trust or Last Will and Testament to accommodate these updates. For instance, you might have a loved one named to receive funds and now they have passed. What will now happen to those funds? Will they go to a minor or a young adult who cannot manage the funds? Make sure and plan for any scenario. 


Secondly, the naming of an executor, trustee, or power of attorney are important decisions. The named individuals are in charge of your estate during your lifetime or after your passing. Naming based on age is not always the best answer. The named individuals should act in your best interest so appoint whoever is best for the job and can handle the responsibility.


Last, but not least, failing to fund your trust and set up beneficiaries are very common. Making sure that your assets are titled in your trust or have beneficiary designations are extremely important to avoid probate and follow your wishes of your estate plan. We recommend that you get proof directly from the financial institution that your changes have been noted on your account. 


Of course, the biggest pitfall of all is not to have any estate planning documents. We recommend that you find an experienced attorney who can guide you through the process. You can find many free educational resources on our website at www.rhodeslawpa.com. Please feel free to contact our office for a free consultation at 321-610-4542 to talk about setting up your plan and get the peace of mind of knowing you can avoid the estate planning pitfalls which might affect you or your loved ones. 

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