22 Mar
Although it is not exactly uplifting to think about, every person will die one day. It’s very important that you have a plan in place to protect your family when this day comes. However, estate planning in Texas does not have to be a depressing or dreadful experience. In fact, creating a plan to safeguard your legacy and ensure that others carry out your wishes can provide you with much-needed peace of mind.
The only certainty in life is that things are going to change. Whether it’s a change in assets, new grandchildren, a change of residence or the death of a loved one, it may be necessary for you to update your estate plan to better fit your new circumstances. Before making changes to your plan, it is important that you are aware of some common mistakes to avoid.
Forgetting about ancillary documents
One common mistake many people make when updating their estate plan is forgetting about ancillary documents. As you update your plan, you may think that focusing on your will or trusts should take precedence. While this is true, make sure you do not forget to review other pieces such as health care directives, powers of attorney or guardian nominations.
Neglecting to review investments and financial accounts
When updating estate plans, many people forget or never even consider reviewing their financial accounts and investments. As you review your estate plan, take time to also review your accounts to ensure you have designated the appropriate beneficiaries. If you pass away without designating beneficiaries for these accounts, your loved ones will likely have to go through the probate process to obtain these assets.
Selecting the wrong executors or agents
When you select trustees, executors and other agents, make sure you are picking those who are best suited to serve your wishes. A common mistake many people make is appointing all their children together as executors or using criteria such as age or profession in their selection process. Make sure you appoint those who live close to you and will also have the time to address issues.
Getting help with updating estate plans
When you created your estate plan, you may have thought you accomplished your mission and that it was another task to check off your list. Getting a plan in place is extremely important, but it is also a good idea for you to review your plan every year to make sure there are no needed revisions. If you avoid the mistakes listed above when you make these revisions, you can prevent unnecessary future complications and have the peace of mind to know that your plan covers your assets, possessions and wishes. By meeting with an experienced and knowledgeable estate planning attorney, you can obtain guidance when reviewing and updating your estate plan.