Mistake #1- Assuming nothing bad is going to happen

     Good estate planning manages the “what ifs” in life and works to lessen the issues that arise from poor planning. Poor estate planning focuses on what happens only when you die. Good estate planning addresses all the issues that you may have if you become incapacitated. If left unbaddresses, this can cause real pain for your family in the future. 

Mistake #2 Thinking your estate is to small to worry about

      If you have something or someone to protect, an estate plan is necessary. Larger estates may involve more complicated planning, but even modest estates deserve careful attention. Estate planning is not just about assets, it’s about the needs of the people in our life. Blended families almost always need proper planning to avoid conflicts or unnecessary difficulties.  

Mistake #3 Not using POA until someone is sick

     Any adult should have someone assigned to them as their POA to make decisions for them when they cannot do so on their own. Emergencies aren’t planned. Marriage alone does not solve this. Even as a spouse you cannot access bank accounts, or 401k information if the accounts are in the name of the incapacitated spuse. Without the right legal authority no one can pay your bills or act on your behalf. 

Mistake #4 Presuming estate planning is a one and done event

     Estate plans are subject to change as your living situation changes. Any time there is a death, marriage, or move to another state an estate plan should be updated. This also applies to changes in health as well. Outdated plans are not helpful and defeat the purpose of having a plan. They can also become outdated and irrelevant due to changes in the law. 

Mistake #5 Not seeking advice from a professional

     What works for others may not work for you. Even though many people have heard of trusts, many could not tell you the difference among the type of trust and their applications. One client we dealt with assured us that his farm was protected by his trust. After reviewing it, it turns out his farm was placed in a revocable trust and did not provide any asset protection. It’s best to avoid online advice when drafting  legal documents. It can be much more costly in the future. The best way to protect you and your loved ones is to contact your local elder law attorney.