Top 5 Estate Planning Blind Spots
Though it's not inherently the easiest of processes, estate planning doesn't have to be complex. Today, we'll go over the top five estate planning blind spots that we've discovered.
- Some are skeptical that they need estate planning documents.
Clients who believe they have very basic property and assets, have not amassed substantial wealth, or do not earn high incomes frequently tell us that they do not believe estate planning documents are necessary. Even in this scenario, it is crucial to consult with an estate planning lawyer and create a will that will safeguard your loved ones going forward. It is imperative for anyone, irrespective of their financial status, to consider their asset distribution during probate. It is crucial to commence this process ahead of time to ensure that you have the most advantageous plan for your family.
2. People believe that all estate plans are the same.
Individuals who desire to leave all of their assets to a single person or who have simple and tiny estates may believe that "one size fits all" when it comes to estate planning. But this kind of thinking might be risky. Each person will inevitably have a slightly distinct estate plan, and if you do not create a plan that takes into consideration your specific situation, you run the risk of getting behind the probate process.
3. Some forget to include the essential checks and balances in their estate planning.
People are likely to be granting an individual a great deal of authority when they establish an estate plan. To prevent an estate executor from abusing their authority while probating your estate plan, it is of the utmost importance to include checks and balances in it. For instance, you should make sure that any interested parties have legal standing.
4. Clients neglect to include the ones they can rely on to step in when their capacity is compromised.
Sadly, the deterioration of our health with age is an inevitable part of life. Incorporating trusted individuals into your estate plan becomes essential given that at certain times, even the most astute and intelligent people will become less capable. At that point, you might require aid with ensuring vital choices, and these people can help you identify when that point is reached.
5. People fail to prepare for future nursing home expenditures.
Most of us will undoubtedly end up staying in a nursing home in the future, and nursing homes are quite costly. Nursing homes can be funded in any of the three ways: privately, through health insurance, or by meeting the requirements to be eligible for Medicaid. Planning ahead for this financial obstacle is essential if you want to position oneself towards fulfillment in the future.