Biggest Mistakes When Creating a Will
Creating a will is essential, but common mistakes can lead to confusion, delays, and complications. Avoid these pitfalls to ensure your wishes are carried out effectively:
1. Failing to Update the Will
Life changes like marriage, divorce, or the birth of children can alter your estate planning needs. Outdated wills may not reflect your current wishes. Regularly review and update your will after major life events.
2. Not Clearly Identifying Beneficiaries
Ambiguous language can cause disputes. Be specific by using full names and clearly defining relationships to avoid misunderstandings.
3. Using an Invalid Will Format
Wills must comply with local legal requirements. Improperly signed or witnessed wills may be deemed invalid. Consulting an estate lawyer can help ensure validity.
4. Overlooking Digital Assets
Digital assets, including social media accounts, cryptocurrencies, and online banking, are often ignored. Include provisions and access instructions for these assets.
5. Ignoring Tax Implications
Estate transfers may carry tax burdens, reducing what beneficiaries receive. Work with an estate planner to minimize taxes using strategies like charitable donations or trusts.
6. Leaving Out Contingency Plans
If a beneficiary predeceases you or cannot inherit, your will should specify an alternate plan to prevent complications. Including a contingency plan, such as naming alternate beneficiaries or specifying what happens if a beneficiary dies before you, facilitates the appropriate distribution of your estate.
7. Not Providing for Minor Children
Failing to designate a guardian for minor children may result in court-appointed guardianship. Ensure your will specifies a trusted guardian. Review your choice regularly to ensure your choice of guardian remains relevant.
8. Overlooking Incapacity Planning
A will only takes effect after death. It doesn’t cover situations where you become incapacitated and need someone to manage your affairs. Create powers of attorney for finances and healthcare, including a healthcare directive to manage decisions if you become incapacitated.
9. Failing to Keep the Will Safe
A lost, damaged, or inaccessible Will may be considered invalid. Keep your Will safe, like a safety deposit box or with your attorney, and ensure your executor knows where to find it. Also, NEVER unstaple your original Will as it may deemed invalid.
By addressing these issues, you can help ensure that your wishes are carried out effectively and that your loved ones don’t face unnecessary challenges after your death. For assistance, call 817-917-8121 to schedule a consultation. Our office is here to guide you through estate planning to make the best decisions for your family.
