Several estate planning mistakes exist, including the Number One mistake of not creating an estate plan. You do not need a ton of money to create an estate plan – you only need to have a bank account or own a car or other assets, regardless of their value.
When a person dies without an estate plan, his or her estate must go through probate, which can become costly. If a person has even a meager savings, probate costs and taxes could eat up the savings, leaving nothing for your heirs.
Several estate planning mistakes exist, including the mistake of not creating an estate plan. Many clients ask me if they have enough wealth to create an estate plan. The answer is yes, because having significant wealth is not necessary to create an estate plan, instead, the desire to determine how your wealth will be distributed and to provide ease and efficiency for those you leave behind. Here are 3 common mistakes:
Mistake #1: Not having an estate plan. Anything could happen at any time. You could develop an unexpected illness or have an automobile accident. Both scenarios have the possibility of rendering you incapable of handling your affairs. With an estate plan in place, your loved ones can make medical decisions and handle your finances. If an accident or illness results in your death, having an estate plan makes handling your estate easier and ensures your wishes are met.
When a person dies without a valid Last Will and Testament in Georgia, his or her estate may be required to go through probate if there are assets that do not transfer upon death. By law, those assets are distributed to the heirs. That may not have been your intent. You might have wanted to leave some of your assets to charities, college/universities, etc., but if there is no Will in place, the heirs will receive any assets that go through probate.
Additionally, in the absence of a valid Last Will and Testament nominating a guardian for any minor children, the Court will determine guardianship of minor children.
Mistake #2: Creating your own estate plan. Creating your own estate plan can be as bad as not having an estate plan. Probate laws are complex, especially when you have real estate and a large number of assets involved. Online wills and trusts may not address your specific needs.
Mistake #3: Not planning for disability. Many people don’t even think about creating an estate plan until they are established in their careers or until they are in their 50s or 60s. That is one of the biggest mistakes anyone can make, regardless of the size of your estate. It is a bigger mistake when you have a family. If something should happen to you, even your spouse cannot make certain decisions for you when you cannot make them yourself.
These are not the only estate planning mistakes a person can make. Not funding a trust and not checking your beneficiaries are two other mistakes. You should also review your plan at least once per year so that you can add new personal and real property you acquired and remove anything you got rid of.
If you haven’t created an estate plan yet or need to make changes to an estate plan, contact our Georgia estate planning attorneys at Grissom Law, LLC today for a consultation.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.