Estate planning is the process of getting your legal affairs in order so that you can pass your property to the people you trust in the way that you want. However, people often make mistakes with their estate plan, which can lead to complications, family disputes and unnecessary waste of the estate assets. Here are seven estate planning mistakes that you need to avoid.

1. Not Having an Estate Plan at All
Statistics show that more than 60% of people are without a will or trust. Whether this is due to not wanting to confront your own mortality, poor planning or any other reason, it is important that you do not make this mistake. Failing to have a will can result in unexpected results. New York’s intestacy law will determine the priority and value of assets that go to your heirs instead of you being able to make these decisions ahead of time. Also, if you become incapacitated, your family may have to go through the expensive process to appoint a guardian over you, rather than following your pre-determined instructions. Ron Axelrod can help you devise a thorough estate plan that protects your wealth and your family.

2. Not Having Contingencies
If you do have an estate plan, you may have failed to consider contingencies. You may have stated that you want a particular person to receive your property. Many people write wills that give all of their worldly possessions to their spouse. However, if your spouse predeceases you and you failed to include contingent beneficiaries, this plan will do no good. Think through various scenarios and address them in your estate plan so that if someone predeceases you, you get divorced or you have more children, these considerations are already factored into your estate plan.

3. Failing to Fund Your Trust
A trust is a powerful tool that allows you to designate how the property in the trust will be managed. You can choose to manage the property during your lifetime and they allow a person close to you to take over management of the assets after your death. However, many people skip the last step of establishing a trust and forget to fund it. This means that there is no property that is actually in the trust, so all the work that you went through to establish the conditions of the trust is worth nothing. Be sure that you transfer property to the trust by executing the necessary titles, deeds and other legal instruments and sending them to the proper sources.

4. Leaving Assets to a Minor
Minors cannot legally inherit property, so it is important that you name a custodian who can manage any property you leave to them.

5. Not Having a Residuary Clause
A residuary clause concerns any other property that you own at the time of your death and that is part of your probate estate that you did not otherwise specifically mention in your will. It is important that you include a residuary clause to determine what will happen to any property you forgot or that becomes part of your estate after your passing.

6. Not Planning for Disability
Many people only think of estate planning as setting up a will or trust to dictate how their property is handled after death. However, a good estate plan should also account for disability. You can work with our knowledgeable estate plan to develop instructions on the type of health care treatment you want, who should make medical decisions for you if you are unable to do so yourself and who should manage your property and financial affairs if you become disabled.

7. Not Updating Your Estate Plan
It is important to periodically update your estate plan by scheduling a review with your lawyer. If major events have happened since your last meeting – such as marriage, birth of a child, death of a beneficiary or administrator – then you may need to create new estate planning documents.

To know more information about estate planning visit http://www.ronaxelrod.com/ or contact an NY Estate Planning Attorney today at (585) 203-1020.

Ronald Axelrod
https://ronaxelrod.com/