Estate planning mistakes could be costly in the future

| Nov 27, 2020 | Estate Planning

Considering the legal and financial protections one may need in the future may lead to someone drafting a will. This is an estate planning document that could allow someone to decide what will happen to his or her stuff after passing, as well as accomplish other specific goals. However, this is not the only step a North Carolina adult should take. It is also important to make sure to avoid certain missteps in the planning process that could cause problems in the future.

One common mistake is failing to update beneficiaries on accounts. It may be necessary to update designations after important life events, such as the death of a loved one, divorce or marriage. In most cases, it is also a mistake to name a minor as a beneficiary as this can lead to complications. A minor may not be able to take possession of accounts or money until they reach the age of 18 or 21.

Another common mistake is failing to complete the estate planning process. For many North Carolina adults, more steps are necessary for full protection after drafting a will. Powers of attorney, living wills or trusts may all be necessary to ensure that one can have the final say over health care, finances and the distribution of assets.

Other estate planning mistakes include failing to fund a trust and not considering the tax implications of certain decisions. The process of putting together a complete and thoughtful estate plan is not always easy, which is why it is helpful to have experienced legal guidance at every step. A knowledgeable attorney can help put together a plan that will provide a sense of confidence and security for years to come.