Having an estate plan can make a world of difference for your loved ones in the future. If you plan ahead, you can avoid making many costly mistakes and save yourself a headache. Our Dallas-Fort Worth estate planning attorneys go over ten estate planning mistakes that you need to avoid.
Mistake #1: Financial Procrastination
Estate planning may be a financial priority, but it is not exactly a day at the beach. Many of us want to put off estate planning until a later date. However, it's crucial to get started right away. If you procrastinate and wait too long, you may miss important tax advantages or be unable to benefit from the current estate tax exemptions. Click here and learn more about the benefits of having an estate plan.
Mistake #2: Outdated Wills and Forms
Once you have started drafting your will and other documents, keep them up-to-date. Several events in your life can require a change in the typeof estate planning documents you need. For example, getting married or divorced, having children, or even buying another home can all impact your current will.
Mistake #3: Forgetting to Update Beneficiaries
Another common mistake is forgetting to update beneficiaries. In most cases, you must go through the terms of your will to ensure that only the right people are named as beneficiaries. For example, if you have a child or grandchild who received an inheritance and is now back in school, their new financial needs may require changing your will.
Mistake #4: Not Considering Tax Implications of Transferring Property
In many cases, transferring property to your heirs can result in a hefty tax bill. For example, if you leave an inheritance to children or grandchildren, they will have to pay income taxes unless the gift falls within certain IRS limits. When planning your estate, consider any tax implications of transferring assets. This blog speaks further on estate taxes.
Mistake #5: Not Consulting with an Estate Planning Attorney
Many people try to save money using DIY estate planning forms or other online resources. While this may seem like a a good way to start drafting your will, consulting with an experienced estate planning attorney is essential. A professional can help ensure all the necessary documents are in place and help you avoid costly mistakes. Unfortunately, you won’t know if an estate plan is set up correctly until it’s too late. Therefore, it’s best to have an estate plan attorney ensure your documents are set properly according to your wishes. They can also provide guidance on trusts, probate, and other estate planning issues you may need to consider.
Let Us Help You!
By avoiding these five common estate planning mistakes, you can help ensure your possessions and assets are handled according to your wishes when the time comes. Taking the proper steps now can save your family a lot of frustration and stress down the road. If you need help figuring out where to start with your estate planning, consult our experienced estate planning team of attorneys. With our help, you can create a plan to keep your loved ones taken care of for generations to come.
Get in touch with our team today at (972) 945-1610 to schedule a consultation!