More than 60% of adults feel that having wills and trusts in place is an important step in aging. And yet, only half of those people have them in place. It’s something too many people put off for too long or neglect altogether.
And then there is a big mess where an organized plan should be. It becomes a huge hassle for family and loved ones.
The best thing every adult can do is get their affairs in order, no matter what stage of life they’re in. Check out this guide to see the most common estate planning mistakes you’ll want to avoid!
Not Making Arrangements At All
The biggest of all the estate planning errors people make is not doing it at all. And it’s also the most common.
So many people choose not to make wills or trusts because they don’t want to think about that time of life. But it’s important to realize that preparing is not the same as wasting time here.
Getting a plan in place will only help make the transition of aging smoother. Some things you can start to think about now are:
- Where your physical assets will go
- Who will help you make medical decisions
- What kind of senior living options you’re interested in
- Gathering all of your account information
Choosing Outdated Methods
There are some people who go ahead with estate planning, but they use outdated methods that may cause problems later on. This mistake usually happens when someone tries to handle these tasks on their own.
It’s important to make sure you work with an expert through the entire process. This way you know you haven’t forgotten anything and it’s all done correctly.
Using General Language
An expert will also help track your wills and trusts to make sure every decision is detailed. Estate planning is very personal to each individual’s circumstances. So the wording needs to be just as specific.
Using general language to outline your desires can lead to confusion with execution.
As you’re writing, be sure to name each piece directly. If you have separate instructions for areas of your life, outline them as clearly as possible. Then read it over as if you are an outsider to check for clarity.
Failing to Update Documents With Life Changes
One of the most important will and trust tips you can follow is to regularly update your plan.
Estate planning isn’t always a once-and-done situation. As your life changes, it’s key to adjust your will to reflect those differences. This could include:
- New beneficiaries
- Added assets
- Marital changes
- Financial standings
It’s also a good idea to make sure your plans for the aging years are correct as well. Things like choosing a senior living community or medical preferences are important to cover.
Missing Assets in the Outline
A key part of completing this task is collecting all of your asset information. An incomplete list will lead to many other estate planning errors.
Making sure you have every asset accounted for will help your loved ones avoid any issues executing your wishes.
It can also help you and them prepare for the tax implications your plan will have. The more thorough you are during this phase, the better off everyone will be later on.
Forgetting to Check Local Legal Requirements
The rules and regulations for wills and trusts aren’t the same in every place. Avoiding legal mistakes means taking the extra time to check out your local laws.
This is especially important if you’re working with a lawyer who is located out of the area. Ask questions about what’s specifically required in your state to make sure everyone is on the same page.
Thinking Only on the Current State of Life
When making wills and trusts it can be tempting to only focus on the current phase of your life. Many people argue that you can’t predict the future, so there’s no point in making plans for it. But not looking at what’s to come can be a big mistake.
Often, a part of aging means not making as many decisions about your life as you once did. There’s a way to stay more in charge through your estate plan.
Consider adding elements like how you want medical decisions made or where you’d like to live to your plans.
Keeping Your Plans Hidden
Of all of the will and trust tips, the most important is to share those plans with your loved ones. It’s not going to jinx anything by sharing your wishes!
In fact, it will make the whole process of aging much easier when everyone is on the same page.
Putting your estate plan out in the open allows your loved ones to ask any questions they may have. That can help give clarification. Or it can help remind you of things you forgot to include.
Leaving Executor Details Out
Speaking of your loved ones, don’t forget to add their part of the plan into your wills and trusts. The last thing you want is problems following through with your estate plan!
The executor is the person responsible for making sure all the terms are carried out. This can be a trusted loved one or a professional. It’s just important to let them know well in advance so nothing comes as a shock.
Mistakes to Avoid When Creating Wills and Trusts
While no one wants to think about the time when you’ll need to execute wills and trusts, it’s key to be ready when it does come. Taking the time to go through estate planning will make a huge difference as you age and for your family.
Aging can be a hard time of life with so much change. It will all go much smoother if you have a plan in place, including for when you need more assistance.
Morada Lawton is a great place for those who need a little help but also want to keep some independence. Our team helps find the balance that keeps every resident safe and happy. Contact us today to learn more!
