- Procrastination
The most common mistake people make in estate planning? Not doing it! Many people view estate planning as overwhelming and easy to delay pending more pressing life events. Sometimes people are simply uncomfortable discussing estate planning, so they avoid it. Another common reason for delaying or avoiding estate planning is the mistaken belief that only rich people need estate plans. However, an estate plan is important for all people. Life is uncertain. Estate planning helps combat the uncertainties of life. Often people discover the importance of estate planning when there is an emergency and the lack of medical and financial powers of attorney make caring for and handling finances on behalf of a loved one impossible. It is important to have a plan in place that offers your loved ones direction if you are deceased, or unable to make decisions for yourself. No matter your age or stage in life, it is important to have at least a basic plan in place.
- DIY Estate Planning
While there are online resources available to people plan their estates on their own, not all online estate planning forms and resources are accurate, reliable, or sufficient for a person’s needs. In using an online form, it’s easy to create errors within your documents that might make them difficult to use or even render them invalid. We often say, an online form is better than nothing, but not by much! It is truly important to consult an attorney for estate planning in order to avoid potential problems with the legality of your documents. This is especially important if you have complicated or significant assets, a loved one with a physical or mental disability, or unusual requests. An attorney can help determine the appropriate documents for you, help you avoid legal conflicts, and offer a personally tailored estate plan. If you are looking for a professional, legal consultation to begin your estate planning journey, the Heights Law Group is here to help.
- Not recording digital information
In this highly technological age, it’s not only important to record banking and administrative information, but online assets and social media accounts as well. Digital assets are a growing area of wealth and can be significant; ranging from cryptocurrency to digital works of art. Additionally, many social media sites, such as Snapchat and TikTok, do not offer memorial accounts or resources to recover the accounts of deceased persons. This means that personal information or content that you would like loved ones to recover would likely be unavailable in the case of your death or incapacity, unless they have access to your usernames and passwords. Social media may hold valuable memories your loved ones would like to save. If your loved ones are unable to access this information, your accounts are at risk for deletion after a certain period of account inactivity. While recording your more important account information, don’t neglect to include information regarding your digital assets and social media information as well. Keep your list up-to-date as passwords and usernames change.
- Losing your estate plan
Whether lost amid life’s shuffle or stored in a forgotten location, it’s easy to lose track of your estate planning documents. It is important that you and your loved ones are aware of where your estate planning documents are located at all times. Copies should be sent to all named decision makers in your estate plan and your primary decision maker should know where you keep your original documents. Refrain from hiding your estate planning documents in obscure places. While valuable, most of your actual estate planning documents will not contain sensitive data such as social security numbers and full bank account numbers. It is advisable to keep your estate plan with your other important documents, preferably in a waterproof and fireproof container in your home (not a safety deposit box). Don’t forget to give copies to your named decision makers and let them know where the originals are kept.
- Not properly planning for disability and long-term care
Disability can include anything from minor mobility issues that come with aging to more serious conditions, such as dementia or paralysis. It is important to carefully consider who you will entrust to take care of you and make medical and financial decisions on your behalf in the event you face future disabilities and require long-term care.
- Not including pets in your estate planning
Our pets are an important part of our lives. Although legally categorized as personal property, no one would deny that our pets are a part of our family. Pet lovers should consider their animals when planning their estates. Ensuring our beloved pets are passed to families best able to care for them should be part of every pet owner’s estate plan. Additionally, when planning for pets, consider including a monetary gift to the person accepting the pets to offset their ongoing care. If you have livestock, such as horses or cattle, this is especially important. We at Heights Law Group love our fur babies and want to ensure that your fur babies are well cared for after your passing.
For any estate planning needs, the Heights Law Group is available for consultation.
