Avoid These 10 Estate Planning Mistakes | The Law Firm of Brown & Jensen

Make sure your legacy is fully protected

Creating your estate plan is one of the most important decisions you’ll make in your life. A well-crafted estate plan can provide invaluable peace of mind during your lifetime and ensure your legacy is protected after you’re gone. On the other hand, estate planning mistakes can have significant negative consequences for your family. Here are 10 of the most significant estate planning errors and how to avoid them.

1. Waiting too long to make an estate plan

None of us want to think of our own death, but it’s important to be prepared for the unexpected. Furthermore, making an estate plan well in advance can be critical while you’re still alive, for instance, for Medicaid planning purposes.

2. Not taking into account all of your assets

Before you create your estate plan, it’s very important that you take inventory of everything you own, including but not limited to:

Real estate
Bank accounts
Investments
Retirement savings
Vehicles
Jewelry
Art
Digital assets, such as cloud storage and files
Other valuable possessions

You need to make sure that everything you own is included in your estate plan. Anything you don’t account for may be distributed according to intestate succession laws, which may not reflect your wishes.

3. Missing important documents

Everyone needs a Last Will and Testament, but depending on your estate planning goals, you may also need a trust, a healthcare power of attorney, a financial power of attorney, and more. An experienced estate planning lawyer can review all the options available to you so that you can use the right tools to achieve your goals.

4. Not carefully considering who will be your personal representative

When you pass away, your personal representative is responsible for managing your estate and distributing assets to your beneficiaries and heirs. You need someone who is responsible, who has the time and resources needed to do the job, and who you trust to faithfully follow your wishes.

5. Choosing more than one person as your personal representative

While you are allowed to pick co-personal representatives, it’s not a good idea. At minimum, two people will have to sign off on everything, which can make the probate process slower. Worse, if your personal representatives disagree, they may actually have to go to court to resolve their disagreements. Instead, pick a single personal representative and at least one alternate in case your first choice is not able to do the job.

6. Ignoring your final arrangements

Part of an estate plan is a funeral plan. Again, no one wants to think too much about their own mortality, but you still need to put your final arrangements in place so that your loved ones aren’t left scrambling after your death. Funerals can be expensive, too, so it’s important to set aside funds to cover those costs.

7. Keeping your estate planning documents in an inaccessible place

You want to make sure that upon your death, the people who need access to your estate planning documents can get them easily. Don’t lock them in a safe or deposit box your heirs may have trouble accessing. Leave a copy with your chosen personal representative, at least one other trusted relative, and your lawyer.

8. Not sharing your estate plan with your family

At minimum, you need to communicate with the people you’ve chosen for important roles in your estate plan, such as your personal representative, trustee, and power of attorney. But it’s important to communicate your plans to all of your heirs and beneficiaries to limit confusion and conflict after your passing.

9. Not periodically updating your estate plan

Estate planning is not a fire-and-forget; it’s something you need to return to as your situation changes. You should plan on revisiting your estate plan at least every few years, as well as after any major life event, such as a marriage, divorce, birth or adoption of a child, etc. In addition, revisit your estate plan any time you buy, acquire, or sell a major asset, such as a business or real estate.

10. Making an estate plan on your own

While you are allowed to write your own Last Will and Testament and other estate planning documents, it’s always in your interest to get professional advice. An attorney can not only ensure that your documents comply with the law but also listen to your story, understand your goals, and advise on the right estate planning mechanisms to achieve those goals. Remember, your estate plan is your legacy. Put it in good hands with the right attorney on your side.

The legal team at The Law Firm of Brown & Jensen has extensive experience helping Arizonans achieve their estate planning goals. Protect your legacy today. Give us a call or contact us online to speak with an experienced Arizona estate planning lawyer.

"Shad has counseled me on a number of legal issues and has helped me with the creation of my personal estate planning documents. I wouldn't hesitate to recommend him to anyone for their tax, trust, or will work. He exudes confidence and knowledge in his area of focus while acting with the utmost integrity for his clients." ─ Spencer, ⭐⭐⭐⭐⭐