Estate planning is a crucial process that everyone should undertake to ensure that their assets are protected. However, estate planning mistakes are unfortunately not all that rare and can have serious consequences.
In this article, we will discuss some of the most common estate planning mistakes to avoid in Queens.
Failing to Update Estate Planning Documents
One of the most common estate planning mistakes is failing to update your estate planning documents regularly. Estate planning documents include your will, trust, power of attorney, and healthcare proxy. Failure to update your estate planning documents can result in unintended consequences, such as assets being distributed to the wrong people or a designated agent not having the authority to act on your behalf.
It is important to review and update these documents as necessary, especially after significant life events such as marriage, divorce, the birth of a child, or the acquisition of new assets.
Neglecting to Plan for Incapacity
Another common estate planning mistake is neglecting to plan for incapacity. Incapacity can occur due to illness, injury, or aging. It is important to have a plan in place to ensure that your affairs are taken care of if you become incapacitated.
This plan should include a healthcare proxy, which appoints a person to make healthcare decisions if you are incapacitated to, and a durable power of attorney, which designates someone to manage your finances if you become incapacitated.
Failing to Consider Estate Taxes
Estate taxes can have a significant impact on the distribution of your assets. It is important to consider estate taxes when creating your estate plan to ensure that your assets are distributed as you intend.
In Queens, the estate tax exemption is $5.93 million as of 2021. If your estate exceeds this amount, you may be subject to estate taxes. There are various strategies that can be used to minimize estate taxes, such as gifting and creating trusts.
Not Having a Will or Trust
Some people mistakenly believe that they do not need a will or trust. However, having a will or trust is essential to ensure your assets are distributed how you want. A will or trust can also help to minimize family conflicts and provide for minor children or other dependents.
Choosing the Wrong Executor or Trustee
Choosing the wrong executor or trustee can also be a costly estate planning mistake. The executor or trustee is responsible for managing your estate or trust and ensuring that your wishes are carried out.
It is important to choose someone who is trustworthy, competent, and able to fulfill the responsibilities of the role. It is also a good idea to have a backup executor or trustee in case the primary person is unable or unwilling to serve.
Contact Ledwidge & Associates in Queens
Estate planning mistakes can have serious consequences and cause undue stress for your loved ones. By avoiding these common mistakes, you can ensure your assets are protected and distributed according to your wishes.
If you need assistance with your estate planning NYC needs in Queens, contact us at Ledwidge & Associates for a consultation with an experienced Litigation lawyer Brooklyn.
Ledwidge & Associates
