The 5 Biggest Estate Planning Mistakes (and How to Avoid Them)
Estate planning can feel overwhelming, but it’s one of the most important steps you can take to secure your family’s future. The right plan can help protect your assets, minimize taxes, and ensure your wishes are honored. However, many people make mistakes that can create unintended complications for their loved ones.
At Cannon Legal Firm, we’re here to help you avoid these common pitfalls. Below, we’ve outlined the five biggest estate planning mistakes and how to steer clear of them.
1. Not Having a Plan at All
Many people put off estate planning, thinking it’s only necessary for the wealthy or the elderly. The truth is, everyone needs an estate plan, regardless of age or financial situation. Without one, the state will decide how your assets are distributed, which could leave your loved ones in a bind.
How to Avoid It: Start your estate planning now, no matter your age or wealth. It’s better to have a plan in place than to leave your family with uncertainty.
2. Failing to Update Your Plan
Life changes constantly, and so should your estate plan. Marriages, divorces, births, and deaths can all impact how you want your assets distributed. Failing to update your plan could mean outdated wishes, or worse, legal complications.
How to Avoid It: Review and update your estate plan regularly, especially after major life events.
3. Not Naming Beneficiaries
One of the easiest ways to pass assets to loved ones is through beneficiary designations on accounts like life insurance policies and retirement funds. But if you forget to name a beneficiary—or worse, if your beneficiary passes away before you—those assets may be tied up in probate.
How to Avoid It: Double-check that all your accounts have named beneficiaries, and update them as needed.
4. Overlooking Healthcare Directives
A comprehensive estate plan includes more than just who gets your assets. It should also address your medical care if you’re ever unable to make decisions yourself. Without healthcare directives, your family could face heart-wrenching decisions during difficult times.
How to Avoid It: Include a healthcare directive in your estate plan that outlines your wishes for medical treatment and appoints a trusted person to make decisions on your behalf.
5. Trying to Do It Yourself
Estate planning involves legal intricacies that many people aren’t familiar with. DIY wills or trusts may seem like a cost-saving option, but they often lead to mistakes that can be costly to fix later. Working with an experienced estate planning attorney can help ensure that your plan is comprehensive and legally sound.
How to Avoid It: Seek professional help from a trusted attorney, like Dana Cannon at Cannon Legal Firm, to guide you through the process.