Estate planning is a sizable task to take on. You are essentially analyzing your entire life and working to organize it into legally binding documents that will protect you, your assets, and your family down the road. With such a significant task, it can be easy to miss certain important details when you are estate planning.
Fortunately, when you partner with an estate planning attorney, these minor details will be top of mind to ensure you are setting yourself and your family up for success when the time comes. However, if you are trying to get prepared for your meeting with your estate planning attorney or wish to be sure your estate plan is not missing any crucial details, here are some common areas that people may miss in their estate plan.
Don’t Miss Mismatching Beneficiaries in Your Estate Plan
With so many details to fill out within an estate plan, it can be easy to write in the wrong individual or accidentally double up on beneficiaries when writing up your will and trusts.
However, it is very important to remember that the individuals you write in as beneficiaries for your life insurance, retirement accounts, and payable-on-death bank accounts will override those you write in for those assets in your will. For example, if you write in your brother as a beneficiary in your life insurance, but then in your will say that your sister will get your life insurance payout, the agreement you made with the life insurance policy will override what your will says.
So, for the sake of ensuring everyone is on the same page, and no future drama ensues, it can be wise to ensure that your will and accounts line up properly.
Don’t Miss Tangible, Personal, Sentimental Assets in Your Estate Plan
Everyone knows to write in your house, vehicle, or business into their estate plan. The large, obvious assets are likely to be written out first. However, what about the sentimental assets or the heirlooms that your family members might have their eyes on? That hutch in the kitchen or your grandparent’s wedding china may not seem as significant as your home, but when it comes to writing out your estate plan, they become just as essential to the final product.
You don’t want to miss the tangible, personal assets. Those sentimental pieces may cause more issues than a house would. As you estate plan, take into account what those around you may hold sentiment for and decide the beneficiaries of those items accordingly. This will save time, hardship, and drama down the road.
Don’t Miss Digital Assets in Your Estate Plan
Did you know that digital assets have become a significant part of estate planning? Our phones, computers, and consoles hold a lot of our sentimental, private, and cherished assets, whether that is pictures, videos, social media accounts, games, or otherwise. These assets are also restricted by usernames and passwords.
When you are starting your estate planning, don’t forget about the assets in the palm of your hand. Take the time to write down all usernames and passwords, your wishes for what happens to social media accounts, where you want your photos and videos to go, and so on. This is even more important if you hold any cryptocurrency. If you do, outline what is to happen to those accounts and who should take control of them. These details have become absolutely essential in our digital age.
Don’t Miss Unfunded Trusts in Your Estate Plan
It is a great idea to create trusts, especially living trusts, as you work on your estate plan to ensure that your larger assets are properly managed and protected and could avoid probate when the time comes. However, just creating the trusts doesn’t do anything.
Often, we see those who create trusts with the intention of putting assets in them, but they will forget as time goes on. It is essential not to miss out on funding your living trusts. That also means properly naming a beneficiary for said trust. These details are crucial if you are trying to save your family time, money, and energy after you are gone.
Don’t Miss Pets in Your Estate Plan
Your pets are your legal property, and probably more importantly, a member of your family. This is the case whether you have a dog, cat, fish, or reptile. If you are under the impression that your pet may live past you, it could be wise to ensure they are set up within your estate plan.
This could mean implementing a fund for your pet, providing funding for the next person for food, toys, and other necessities. You will also want to write in who you wish to take over ownership of your pet. Like any beneficiary title, it is important to discuss it with the individual first to ensure they are comfortable with the decision.
Don’t Miss Incapacity Documents in Your Estate Plan
An often missed step in estate planning is not writing a durable financial and healthcare power of attorney. These individuals will be there to speak on your behalf if you become incapacitated, ready to speak on financial matters such as bills or debts or healthcare matters such as surgeries or life-saving medicine.
You not only want to choose these individuals, but you also want to write out your wishes in these categories, stating your decisions about what you want to happen to your finances or health if something were to happen. It is a heavy topic, but a necessary one.
Don’t Miss Updating Your Estate Plan When Life Changes
Lastly, you don’t want to write up your estate plan and then walk away completely. Often, individuals will go through major life changes and forget to update their estate plan, leaving many directions in that plan unnecessary or irrelevant. To ensure that does not happen, your best course of action is to either update your estate plan after significant life choices or at least every three years, depending on your circumstances.
An ideal way to stay on top of your estate plan is to have a partner in the process. Partnering with an estate planning attorney can help you with accountability and also ensure that your estate plan is not missing any of the details listed above. If you want to have a strong, legally binding estate plan, partner with an estate planning attorney.
If you have further questions or wish to start your estate planning, contact the team at Janssen Estate Probate & Elder Law.