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Sometimes, a plan looks good on paper, but is missing key details. At Oath, we’ve had the privilege of fixing hundreds of broken estate plans across the country, and helping those families secure peace of mind. Here are the 5 most common missing pieces in broken estate plans you should be aware of.
1. Outdated Information: If your plan was made more than five years ago, key events in your life may not be accounted for in your current estate plan. If you have been married, divorced, celebrated the birth of a child or grandchild, lost a member of your family, or if a beneficiary has been married or divorced, your estate plan needs to reflect the new shape of your life. Estate planning attorneys commonly recommend you update your estate plan to reflect these changes programmatically every three to five years.
2. Overlooked Incapacity Planning: If you suffer a stroke, a car accident, a fall, or are otherwise incapacitated, your loved ones may not be able to access your money to pay for your hospital bills. An estate plan that doesn’t plan for incapacity could leave your family to pay high costs out of pocket, complicating your care and putting an extraordinary burden on them.
3. Not Funding a Trust: Trusts are strong tools for many to ensure their legacy passes on to their family. Money or assets not included in the Trust, or not yet placed into the Trust, will still go through the expensive and emotionally demanding probate process. To save your loved ones thousands in court fees, ensure you’re on track to fully fund the Trust(s) included in your estate plan.
4. Ignoring State-Specific Laws: Estate laws vary by state. If you have property in multiple states, plan to move, or created your estate plan in another state, your plan may not take into account the complex legalities of ever changing interstate law.
5. Appointing the Wrong Executor or Trustee: A broken estate plan may not have an executor or trustee named at all, or it may name someone who is no longer the best choice to serve your family’s needs. If your relationship with your currently named executor or trustee has changed, or if they no longer have the capacity to serve due to death, illness, or other factors, it may be time to update your plan.
Does your estate plan rhyme with one of the pieces we discussed above? Have you been procrastinating on your estate plan , leaving your family vulnerable? If you’re worried about your family’s future, Oath is here to help. Schedule a 30-minute Estate Planning Discovery Call today and we’ll help you fix your broken estate plan.
Disclaimer: This blogpost provides general information about estate and financial planning and is not intended as legal or financial advice. It’s essential to consult with a qualified estate planning attorney and financial advisor to discuss your specific needs and create a plan that’s right for you.
