While it may seem like a difficult responsibility, estate planning is crucial for safeguarding your assets and ensuring that your wishes are followed. Many of the people living in Arkansas either ignore or make mistakes when creating their wills.

Errors in estate planning could cause uncertainty, lengthy probate processes, or even conflicts in the family. Fortunately, these mistakes can be easily avoided with a little preparation and the direction of an experienced estate planning attorney.

Procrastination

One of the worst mistakes in estate planning is simply not doing anything at all. Many people put off developing an estate plan because they feel they are too young, have insufficient assets, or just want to avoid thinking about death. Should the unanticipated occur, however, this might place your family in a challenging situation.

How to Avoid It: Even without significant assets, you should develop a plan detailing your intentions, including guardianship options and medical directives. Your estate plan will change with you, so it’s advisable to have a simple strategy in place now and change it as necessary. An attorney can help you through the process to ensure that your estate is safeguarded and the future of your family is secured.

Neglecting Updates

Many individuals neglect to update their estate plans following significant life events such as marriage, divorce, the birth of children, or the loss of a spouse. Outdated beneficiary names, guardianships, or inheritance instructions might all result from this carelessness.

How to Avoid It: Reviewing your estate plan every few years or after major life events should become second nature to you. A brief meeting with your estate planning attorney can help make sure your paperwork accurately represents your current preferences and situation.

Incorrect Beneficiary Designations

Another common error in estate planning is failing to correctly name or update beneficiaries on accounts like life insurance policies, retirement plans, or payable-on-death accounts. Without correct designations, these assets may wind up in probate or be allocated against your wishes.

How to Avoid It: Review your beneficiary names often and change them following major life events. It’s vital to make sure the designations on all of your accounts line up with your general estate plan. Your attorney can assist you in arranging your beneficiary designations to align with your estate planning records so as to prevent any conflicts or oversights.

Not Funding Your Trusts

If you have gone through the work of establishing a revocable living trust, you must make sure your assets have actually transferred into the trust. Failing to fund your trust is a common mistake that might subject assets to probate, undermining the benefit of establishing a trust in the first place.

How to Avoid It: Work with your attorney to retitle your assets so that they’re owned by your trust. This covers real estate, banking accounts, investments, and other major assets. Without proper funding, your trust is merely a piece of paper and won’t serve its intended purpose.

Not Planning for Incapacity

Many people concentrate on what happens to their possessions when they die, but neglect to prepare for what should happen if they become disabled. If you are unable to make decisions for yourself, your loved ones may struggle to handle your healthcare and financial affairs without the proper paperwork in place.

How to Avoid It: Include powers of attorney for money and healthcare in your estate plan. These documents should name someone you know can trust to act on your behalf. A living trust will also let you indicate your preferences for end-of-life treatment, thereby sparing your loved ones from having to make difficult decisions without direction.

Naming the Wrong Executor or Trustee

Choosing the right person to be the executor of your will or the trustee of your trust could cause a whole range of problems, including mismanagement, family strife, or legal conflict. Some people make the mistake of appointing a family member out of obligation rather than selecting someone with the right skills and temperament.

How to Avoid It: Choose someone who is dependable, responsible, and adept at handling financial affairs. In case your initial candidate is unavailable or reluctant to serve, it’s also smart to find a backup executor or trustee. See an attorney to assess your best choices for this important job.

Forgetting About Taxes

Even though Arkansas lacks a state inheritance tax, federal estate taxes apply to sizable estates. Many people overlook the tax implications of their estate plan, which can greatly affect the money their beneficiaries receive.

How to Avoid It: Work with an estate planning attorney and a financial advisor to learn about your estate’s potential tax obligations. Careful preparation allows you to lower the tax burden on your beneficiaries by means of gifts, charitable donations, or establishing trusts.

Work with A Trusted Attorney

At Milligan Law office, we appreciate the need for a thorough estate strategy. We’ll help you steer clear of these common mistakes and help make sure that your loved ones are taken care of and that your wishes are followed. If you’re ready to protect your legacy, contact us today to arrange a consultation about estate planning.