Common Mistakes in Estate Planning

People plan on having a good day, good life, good retirement. But why stop there? Why not plan for a better end of life, too? 

Do you know what happens if you die without a will? Not having estate planning is a big problem. Estate planning can provide peace of mind that ensures your assets, interest and will protect your loved ones after you die. 

It is about getting plans in place to manage risks at the end of your life and beyond. So consult a real estate attorney in Knoxville, TN that helps you make a plan and control your situation without making any mistakes. However, people make mistakes as they approach estate planning. Let’s take a look at some widely-committed mistakes that can lead to consequences.

Underestimate the need for planning

Estate planning is not only for luxurious people or for those with complicated finances. Without a will or trust, you give control to the state to make the big decision. It is for individuals who want to ensure their wishes concerning their assets are carried out upon their death. Proper planning with a real estate attorney can ease the probate process for your family. It helps create a plan for minor children and designate someone who will act on your behalf. 

Otherwise, the state can distribute your property and assets. And without a designated guardian, the judge will pick the guardian if you have children under 18. By having a plan, you can trust that your personal and financial affairs will be handled properly.

Putting off estate planning for too long 

Another common mistake that families and individuals make is putting off their estate planning for far too long. The essential thing to remember about estate planning is you can always start with a basic plan in place and then nurture it as you and your finances mature. Make it and set a goal to get your estate planning started early with a trust and estate planning attorney near me so you and your family can enjoy the peace of mind that an estate planning lawyer offers. 

Not putting sufficient thought into choosing a trustee

You choose a trustee who will be in charge of your affairs after your death is not easy. Therefore, you need to take time and think properly to name the right trustee for your needs. When selecting a trustee, you must select the person who will be best fitted for the task. Resist the desire to simply choose your oldest child or a friend because it seems logical at the beginning. Your real estate planning attorney can advise you who might be most fit to serve as your trustee. 

Neglecting digital assets

The world is rapidly growing more and more digitally. Hence, it makes sense that estate planning would also grow to enclose more and more digital assets. Who will handle your social accounts after you die? What about digital copies and purchases of important documents you have stored on your computer? Ensure to assign a specific authority to manage those assets after you are gone.  

Not updating plans over time

Estate planning isn’t a matter of “set it and forget it.” Simply planning isn’t enough. You need to update estate plans after major life events and family or business structure changes such as birth, divorce, moving to different states, or any property acquisition. For instance, if you move to a new state, you need to review your estate plan, legal instruments like a will, power of attorney. If a new member is born or someone dies, it might need modifications. Update your estate plan with the help of an estate planning lawyer to ensure that your wishes align with your will. 

Not planning for Estate tax liability

Estate tax liability seems like a rich person issue; that is true at the federal but not necessarily at the state level. After the federal exemption for 2019 is $11.4 million per person. However, after 2025, the law returns back to the previous $5 million exemption amount. The government is in requirement of revenue and looking forward to new taxes as a solution. It raises income taxes, wealth tax, or increasing estate tax revenue will be on the table over the next few years. 

Don’t make these estate planning mistakes

Avoid making estate planning mistakes and prepare for death with an estate plan by a real estate attorney in Knoxville, TN. Planning for your death minimizes the chance of family and legal battles that allow you to name your children’s guardian, reduces taxes, and lets you decide who gets what. If you want to take a step ahead protecting your loved ones after death and your children to protect financially, whether you live to a hundred or die tomorrow. Estate planning is an easy and affordable way to make this happen with the best estate planning lawyer.

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