What Mistakes Should You Avoid in Estate Planning and Updating?

Creating an estate plan is one way of showing your family members how much you care about them. While confronting our own mortality is never easy, having an estate plan in place and then updating it regularly can be beneficial for you and your loved ones. When you leave behind a well-thought-out estate plan, clear directives in the plan will help your family members avoid disputes and conflicts.

If you have done well for yourself financially, proper estate planning can help preserve your wealth for future generations and establish a legacy of charitable giving. The best estate plan is adaptable. As your life changes, your estate plan must be reviewed and updated to reflect any changes in the laws of your state, changes in family dynamics, and changes in financial circumstances.

It is essential when having an estate plan prepared – and when reviewing your estate plan – that you avoid certain mistakes that can potentially change what happens from what you intended. Having an experienced Naperville, IL estate planning attorney from Gierach Law Firm by your side throughout the planning process and the updates is essential. We offer a variety of services to meet your unique needs and will always take the time to fully understand your needs and your family’s needs.

The Risks of Inadequate Estate Planning

While some people’s only goal is to avoid probate, that should not be the overarching theme of your estate plan. While avoiding probate is a worthy goal, there are many more considerations. Below are some of the mistakes you should avoid when having an estate plan prepared or updating your estate plan.

Updating your will or trust while neglecting to update documents like guardian designations, health care directives, or powers of attorney

A person you designated as trustee, executor, guardian, or power of attorney may no longer be alive or could have moved out of the state, making it impractical for them to serve in the designated capacity.

Failing to review your investments and financial accounts on a regular basis

Many people fail to do one simple thing that can have adverse consequences after their death. This is forgetting to put beneficiary designations on financial accounts and life insurance policies held outside a trust.  

Using emotion to select agents to act on your behalf

While you may choose an executor, guardian, or trustee based solely on the fact that you feel your oldest adult child would be hurt if you choose someone else, this is not how these positions should be filled. Some people appoint all their adult children just to avoid any disagreements. Unfortunately, this is rarely the best course of action. The ideal candidate must live close to you, must fully understand that they are to follow your wishes, and must have plenty of time to do so.

Moving out of state and not updating all your estate plan documents

Your estate plan must reflect the laws and rules of the state you reside in. What worked in one state may not be remotely correct in another.

Failing to keep an updated, accurate account of your assets

As we age, change jobs, change homes, add to our families, and generally live our lives, we accumulate assets and dispose of assets. While real property may be fairly easy to locate, financial accounts may not if no one in your life is privy to all your financial transactions. If you have stock and bond investments, life insurance, securities, annuities, and other investments, it is unlikely they are all with the same company.  Keep a list of your accounts and assets, and remember to update the list as those things change.

Contact a Naperville, IL Estate Planning Attorney

Your goal when planning and updating your estate plan is to avoid mistakes that will prevent it from doing what you want and expect it to do. Having an experienced, highly skilled Naperville, IL estate planning attorney from Gierach Law Firm ensures your estate plan will perform as it is meant to.

While nobody can predict the future, we have more than 30 years of experience helping families address all their estate planning needs. Once you understand your options, we will help you choose the tools and strategies to ensure you and your family are provided for. Contact Gierach Law Firm at 630-228-9413 to schedule a meeting to discuss your estate plan.