It would be a great disaster after considering creating estate plans and the plan fails just because of simple but yet costly mistakes. There are several little details that people overlook, and these same details causes’ lots of property loss, long and exhausting probate issues in New York City. So many people feel they can handle estate planning on their own and so end up not considering critical issues therefore complicating things for their loved ones after death.
Here are estate planning mistakes you should avoid.
- Thinking estate planning is only for the wealthy – this is often the first mistake people make. Regardless of the value, whatever assets and belongings you have in your name are called your estate. If all you have is a car and a bank account with two children, if you do not state clearly whom you want the car to go to, then there likely will be squabbles over it when you die.
- Not planning for estate tax — In New York, estate tax is an amount payable to the State when you die leaving an estate worth over $5.85 million. The tax can reach up to 16%, which is a considerable amount. If your estate will be subject to this and you wish to avoid it, your attorney can help achieve that by gifting, establishing trusts, etc.
- Neglecting incapacity planning — Some people feel estate planning is all about planning for disbursement of one’s estate after death. Ideally, it also has to do with the management of said estate during incapacity. There is incapacity when you are no longer legally competent to make reasonable decisions for yourself. It can be caused by a number of factors including age and cognitive disorders that come with it. Through incapacity planning, you create documents to authorize a fiduciary to make decisions on your behalf when you become suddenly incapacitated.
- Not planning for probate — If you create a will to disburse your estate, then a complex, lengthy and expensive court process known as probate must be carried out after your death to validate the will. Probate is more complex for complex estates and traumatic for grieving families. Holding assets in a trust instead of a will can avoid probate. When only a few assets are addressed in the will, probate will be less complicated.
- Not updating your estate plan — If you have already created an estate plan, it is important to review it from time to time. This is because as life continues, situations change which would require a relative change to your estate plan. For example, new births, divorce, marriage, death of a beneficiary or executor may require a change to your will. Estate planning laws are also frequently changing. If you have an estate planning attorney near you, have them review your estate plan to see if it currently coincides with your present wishes and goals.
The main purpose of an estate plan is to mirror the wishes or intentions of the estate owner; an estate plan that doesn’t do this has failed. To avoid unnecessary mistakes it is best you contact a professional. Contact us, and we will provide you with the best New York estate planning attorney for your estate plan.
The nature of an estate plan, sometimes makes it complicated planning or creating estate document all by yourself, you may need the help of an estate planning attorney when planning your estate. An estate planning attorney is an expert in the estate planning process. You stand to benefit a lot if you contact one when planning your estate. They are experienced, familiar with loopholes in the estate planning process, they know the court processes well, have important resources at their disposal, and can offer you the best advice when you need one.
Contact an estate planning near you today.
When planning your estate, you may require the help of an expert. An estate planning attorney boast of the necessary skills, knowledge, and experience to walk you through the estate planning process. With the assistance of the attorney, you will plan an estate that conforms to your wishes and the laws of your state. If you live in New York and you have finally decided to plan your estate but you need advice or assistance on how to get it done easily, you can contact us. We will provide you with the best estate planning attorney.
Contact an estate lawyer near you, today.