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Estate planning is essential for anyone who wants to control how their assets will be distributed after they pass away. Estate planning mistakes can be costly. They can result in delays or even prevent your assets from being distributed as you would prefer. Common estate planning mistakes in Florida and New York include:
- Failing to make an estate plan
- Outdated estate planning documents
- Not funding your trusts
- Not preparing for incapacitation
- Noncompliance with state law
Failing to Make an Estate Plan
If you fail to create an estate plan before you pass away, you won’t be able to decide who will inherit your assets after you die. Your state’s intestate succession laws will determine your heirs and what they will receive, whether or not this matches your wishes. For example, if you have no spouse or children, your estate can pass to your parents or siblings. If you do have a spouse, they may inherit your entire estate. If that’s not what you want, you need to make an estate plan to enable you to provide for everyone you want to take care of. A complete estate plan, with both a will and a trust, can also help your estate avoid probate.
Working with Outdated Estate Planning Documents
Another common mistake is failing to update your estate plan despite changes in your life or intentions. Outdated documents can keep you from achieving your goals for your assets. Outdated beneficiary designations can result in tax consequences for your heirs. If you go through any significant changes, you should contact a lawyer and update your estate plan immediately.
Not Funding Your Trusts
It’s not enough to establish a trust if you do not transfer your assets into that trust. The purpose of setting up a trust is to prevent your assets from going through probate. Some trusts, such as New York’s supplemental needs trust, can also help you care for a loved one with special needs. If you don’t transfer your assets into the trust you’ve set up, those assets must go through probate. They may also count against your loved one for purposes of qualifying for disability benefits.
Not Preparing for Incapacitation
What happens if you become incapacitated and can no longer make medical decisions for yourself? If you don’t do anything to prepare for the possibility of incapacitation, your relatives may not know what you would have wanted. They may not have any power to make your wishes happen. You can prepare for incapacitation by establishing an advance directive, such as a living will. A living will tells doctors what kind of medical care you want to receive if you become incapacitated. You can also designate a health care surrogate who can make decisions for you if necessary.
Failing to Comply with State Law
If you haven’t reviewed your estate plan in a while, your will or trusts may not be in compliance with current state law. If your estate plan is noncompliant, someone might be able to challenge your will. A court challenge will delay the settlement of your estate and keep your loved ones from inheriting anything until the court resolves the issue. Have your estate plan reviewed periodically for compliance by a skilled estate planning attorney.
Contact an Estate Planning Lawyer Today
A lawyer familiar with your state’s estate planning laws can help make sure:
- Your estate plan is up to date
- Your trusts are fully funded
- You’ve made no errors that will increase your heirs’ tax debt unnecessarily
- You’re prepared in case you become incapacitated
- Your estate plan is compliant with state law
The Law Office of Angela Siegel provides estate planning services in Florida and New York. Based in Garden City, New York, we serve both states with dedication and years of estate planning experience. If you need help putting together an estate plan or reviewing your existing plan, contact us today to get started with a consultation.