Estate planning is not something that people enjoy thinking about, but it is essential for every individual to plan their estate to ensure their legacy is protected for the future generation. Proper estate planning is about creating a comprehensive plan of action for who will receive your assets and how they will be distributed, in the event of your incapacity or death.
However, estate planning can be a challenging task. Many people make mistakes in the process which can cause significant issues down the line. In this article, we will discuss the most common estate planning mistakes that people make, and how to avoid them.
Mistake #1: Failing to Plan
Many people avoid the process of estate planning altogether, thinking that it is not necessary. However, failing to plan properly can lead to significant trouble for your loved ones, if something happens to you. Without a will or a trust plan, your assets will be distributed by provincial law, which might not necessarily align with your wishes.
How to Avoid: The best way to avoid this mistake is to work with a professional estate planning lawyer to create a comprehensive plan that is aligned with your wishes.
Mistake #2: Not Updating Your Plan
Even after creating an estate plan, people make the mistake of not updating it when significant life events occur. Life events such as the birth of children/grandchildren, divorce, and other significant life changes can significantly impact your estate planning needs.
How to Avoid: Ensure that you are reviewing your estate plan regularly with your estate planning attorney to make the necessary changes based on significant life events.
Mistake #3: Not considering Your Beneficiaries
Not all assets are passed by probate, which means you need to pay attention to each asset’s beneficiary designation. In some cases, people forget to update their beneficiary designation or leave it to the wrong people.
How to Avoid: Always ensure that your beneficiary designations are consistent with your estate planning documents and are up to date.
Mistake #4: Choosing the Wrong Trustee or Executor
When selecting a trustee or executor, people often make the mistake of choosing family members without considering their qualifications or ensuring that they are willing to serve.
How to Avoid: Choose a trustee or executor that is reliable, trustworthy, and competent to carry out their duties as defined under your plan.
Mistake #5: No Power of Attorney or Personal Directive
An enduring power of attorney and personal directive is necessary for everyone to ensure that their health care and financial decisions can be made, in the event of incapacity or disability.
How to Avoid: Work with your estate planning lawyer to create an enduring power of attorney and personal directive that is consistent with your estate plan.
Estate planning is about making sure that your assets end up in the right hands and that your loved ones are protected. While it may seem like a daunting task initially, avoiding mistakes can help ensure that your estate plan is comprehensive and up-to-date. Work with an estate planning lawyer and avoid the mistakes discussed in this article to ensure that your wishes are fulfilled and your legacy is protected. Proper estate planning is a tribute to your loved ones and the ideal way to secure your family’s future.
At Summit Legal Group, we include a comprehensive Will Package, which includes the Will and Last Testament, as well as the Personal Directive and Enduring Power of Attorney. Reach out to us today to find out how we can help and ensure your legacy is protected in the preparation of your legal documents.
