When it comes to drawing up an estate plan, many people take a passive approach. They write out their will or set up a trust and leave it at that. But your life doesn’t stand still, and neither should your estate plan. The fact is that an estate plan is a living, evolving set of documents and your estate plan needs to evolve with the rest of your life. Proactive planning can ensure that you stay on top of your evolving needs, avoid common estate planning mistakes, and properly secure your family’s future.
What is Proactive Planning?
In a sense, all estate planning is proactive planning. You are making arrangements now to prepare for your future. But, proactive planning really means establishing a deeper engagement with your estate plan, ensuring that all aspects of your estate plan are covered, and updating your documents regularly. Estate planning is about a lot more than just wills and trusts, and proactive planning ensures that you have your fingers on the pulse of everything you need to protect your legacy.
Common Estate Planning Mistakes to Avoid
Proactive planning also means being aware of some common estate planning pitfalls, and steering clear of them. Here are a few to look out for:
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- Not Updating Your Estate Plan. Your life is in a constant state of flux. Your financial situation may change, or you may welcome a new member to the family. When you get caught up in the emotions of a major life change, it can be easy to forget to update your estate plan. If you don’t, however, the assets you’ve worked a lifetime to accrue may end up going to the wrong person, or you may leave a loved one unaccounted for. For this reason, regularly reviewing your estate plan is recommended.
- Overlooking Key Documents. While wills and trusts are the documents most people think of when it comes to estate planning, there are many other items that are just as important and should not be overlooked. These include healthcare documents, such as a living will or healthcare power of attorney, beneficiary designations, and other financial documents.
- Drawing up the Wrong Type of Power of Attorney (POA). Most powers of attorney are effectively immediately. This means that, should you become incapacitated or otherwise unable to make your own decisions, the trusted individual you named as your POA can immediately make choices on your behalf. Many people, however, opt instead for a springing power of attorney, an arrangement in which the POA only goes into effect when certain conditions can be legally met. This can delay the process by which your representative can act on your behalf, and can cause headaches during moments when time is of the essence.
- Not Informing Loved Ones. An important step in estate planning is to inform everybody about their roles. This can prevent considerable confusion and hurt feelings when it comes time to administer the estate. You don’t want to assign an important role to someone who is not up to the task, nor do you want to get anyone’s hopes up about an inheritance they may not receive. A little proactive planning now can prevent a lot of bad feelings later.
Contact the Estate Planning Law Group of Georgia
At the Estate Planning Law Group of Georgia, we’re here to help you navigate every aspect of your estate plan. We realize that it can be a daunting process, but we can help you take a proactive approach and avoid common estate planning mistakes. Give us a call today at (770) 822-2723 or fill out the form below and get started protecting your family’s future.
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