Common Estate Planning Mistakes to Avoid

Estate planning is one of the most loving and responsible things you can do for you and your family. With a thorough estate plan, you can ensure that family members receive certain assets after you pass away, name a guardian for your minor children, and more. Careful care is necessary when planning your estate, though. Even the smallest mistake can result in your legal documents not being enforced and ultimately, your wishes may not be respected. Below, our Utah estate planning attorney outlines some of the most common mistakes and how to avoid them.

Failing to Regularly Update Your Estate Plan

Important life events such as births, deaths, marriages, and divorces typically require you to update your estate plan. If you experience financial changes, these also warrant a review and potential update of your estate plan. Any changes to Utah’s probate or tax laws can also impact your current plan, requiring a change to ensure your wishes are respected. Failing to update your plan can result in contentious disputes, outdated allocations of property, and missed opportunities to develop new tax strategies.

Even without any important life changes, it is recommended that you review your plan every three to five years. This will ensure that it is up to date and reflects your current situation and wishes.

Not Establishing a Living Trust 

Living trusts have many benefits. They allow you to control property during your lifetime before distributing it directly to your beneficiaries after you pass away. They also ensure your property is managed if you ever become incapacitated. There are many misconceptions about these legal tools. Many people think trusts are expensive or overly complicated. The advantages they offer over the long-term, however, typically far outweigh the initial cost.

Failing to Properly Designate Beneficiaries

Beneficiary designations typically override wills and other estate planning documents, so it is critical to ensure that they are up to date. Outdated or inaccurate beneficiary designations may result in your property being distributed in a manner you did not intend, and create unnecessary legal disputes and challenges. When designating beneficiaries, include your loved one’s full names and their specific relationship to you in order to avoid challenges or confusion.

Using DIY Templates

There are many do-it-yourself templates available online and for many, it is tempting to use these. Unfortunately, it is a mistake. These templates are very generic and do not take specific state laws into consideration. Legal mistakes and failing to ensure documents are properly executed can result in disputed intentions and invalid plans. Always speak to a Utah estate planning attorney who can help you plan for the legacy you want to leave behind.

Call Our Estate Planning Attorney in Utah for Help 

At AGS Law, our Utah estate planning attorney can help you create a comprehensive plan that will reflect your wishes and ensure that you and your loved ones are cared for. Call us today at 801-477-6144 or fill out our online form to schedule a consultation and to get the legal help you need.

Source:

le.utah.gov/xcode/Title75/Chapter7/C75-7-P6_1800010118000101.pdf