Estate planning can seem simple on the surface to many people. When you are old and grey you somehow express your final wishes in writing and that’s the long and short of it.
In fact, this is a mistaken approach that can cause you and your family members some serious difficulties in the future. We would like to look at some of the common mistakes that people make in an effort to raise awareness.
DIY Estate Planning
These days people often try to find quick fixes on the Internet. There are sites that sell template legal documents including last wills and trusts. However, there are various different pitfalls involved in taking this route. If you try to take things into your own hands with a document that you constructed yourself you are taking a very big risk.
Failure to Protect Assets
With the proper planning you can position assets in a way that protects them from former spouses, creditors and claimants. People sometimes lose a great deal due to the fact that they did not plan ahead with the appropriate knowledge and guidance.
Making Assumptions About Wills
There are those who never consider creating a trust because they feel as though a will is simpler and less expensive. In fact, your estate must pass through the legal process of probate when you use a will. Probate is time-consuming, and it can be quite costly after court costs and professional fees are paid.
No Incapacity Planning Provisions
Arranging for asset distributions after your passing is only part of the equation when you want to be comprehensively prepared for the future. Taking the possibility of incapacity into account is important as well.
Incapacity planning involves the selection of agents that would be empowered to act in your behalf in the event of your incapacitation via the execution of legal devices called durable powers of attorney.