A majority of people put off some very crucial life decisions until it’s too late—whether this is due to a lack of being able to follow through, procrastination, lack of knowledge, or denying their own mortality! More than 48% of Americans over the age of 50 don’t have a will or contingent estate plans.
What Is Estate Planning And Why Do I Need It?
Also known widely as the end-of-life planning, estate planning refers to taking control of situations that require a plan that can serve to manage an individual’s asset in the unfortunate event of death or incapacitation where palliative care is needed.
It includes a bequest of estate tax settlements, how assets will be distributed to the heirs, a living will about who gets the healthcare power of attorney, setting up a trust, charity/donation, funeral arrangements, and more.
While it’s understandably unpleasant even to fathom such things, everyone knows that no one lives forever. Often people wait till a significant health scare shakes them to the core to get out of the procrastination. Don’t wait for life to happen to you!
When you plan on devising an estate plan, make sure to work with an experienced attorney who’s well versed with estate laws to avoid added costs, taxation, probates, and heartache of dealing with significant pitfalls during such stressful times. Here are a few recurrent mistakes people make and their ultimate solution.
#1 Outdated Plans
Some parts of the estate plan can quickly become obsolete in case of significant life changes in the family, including death, birth, marriage, or divorce. It can also include things like changes in job status, net worth, residence, goals, composition of the estate, and many other factors.
Beneficiaries: Countless cases and rulings cause massive blows when an estate plan is made, for example, when one was single and hasn’t been updated after marriage or having children. Someone can remain inadvertently excluded, or the assets might go to unintended beneficiaries in case one has an outdated beneficiary or no contingency plan.
#2 No Plan for Palliative Care
Research reveals that over 70% of people over the age of 60 need long-term care. Not planning for disabilities can cost you more than $150,000 per year. Whether you’re still working or have moved into retirement, make sure to opt for efficient short- and long-term care planning and disability insurance.
#3 Not Choosing A Designated Guardian For Minor Beneficiaries
In case of the unfortunate, untimely death of you and your spouse, your children under the age of 18 will not be permitted to own a property as per the state laws. Save them the trouble of acquiring guardianship by drafting a will stating the custodian or trustee who should support the children until they are of legal age.
Make sure to spell out instructions of how you want them to be discrete or spend the money on minor beneficiaries so that your children can feel your love and live the life you wanted for them even after you’re gone.
Work with an estate planning lawyer who reflects on your individual goal by developing a unique approach. Kalicki Collier is a full-service law firm that offers compressive estate planning services, including tax planning, business planning, living trusts, divorce and family law, and more, in Reno, NV.
The firm also hosts proficient probate lawyers and trust attorneys who assist their clients throughout the daunting process. Connect with Nevada’s most renowned law firm at 775-204-0600 to request a consultation today.