The Most Common Mistakes in Wills and Estate Planning

Creating a will and estate plan is an essential step in securing one's legacy and ensuring that loved ones are taken care of. However, many individuals overlook crucial aspects, leading to potential complications and unnecessary expenses. This article explores the most common mistakes people make in wills and estate planning, highlighting the importance of proper legal assistance and clear documentation.

Common Mistakes in Wills and Estate Planning

Estate planning can be a daunting task, but failing to plan can result in significant financial and emotional burdens for survivors. Here are the top mistakes that people often make when it comes to wills and estate planning:

Mistake 1: Failing to Draft a Will

One of the most significant mistakes people make is not having a will at all. According to the World Bank, only 62% of Americans have a will, meaning 38% of Americans die intestate without a will. This can lead to complications in asset distribution and probate proceedings. Probate is the court-supervised process for distributing assets after death, and it can be a lengthy and costly process.

For example, the average cost of probate for an estate with assets between $100,000 and $500,000 is $8,345. For an estate valued between $500,000 and $1 million, the cost increases to $43,252, and for estates worth over $1 million, the cost soars to $80,822.

Skip these costs by ensuring you have a well-drafted will and having it properly executed. This ensures that your wishes are clear and that your assets are distributed according to your intentions.

Mistake 2: Improperly Drafting and Signing the Will

A will should be legally valid and properly signed to be recognized by the court. Common errors include:

Not having the will signed by the requisite number of witnesses, Including vague or unclear language that might lead to disputes, Not having the will notarized, which can provide additional legal protection.

To avoid these pitfalls, it is advisable to have a qualified lawyer draft your will. A lawyer can ensure that the will is legally binding and that your wishes are clearly communicated.

Mistake 3: Not Choosing the Right Executor

The executor is responsible for carrying out the instructions outlined in the will and ensuring that assets are distributed according to your wishes. Choosing the wrong executor can lead to delays, disputes, and mismanagement of assets.

To avoid this, select a trusted and capable individual who has a good understanding of your wishes and the ability to manage your estate efficiently.

Mistake 4: Ignoring the Distribution of Assets

Many people forget to assign specific assets to specific beneficiaries in their will. This can lead to confusion and disputes among family members. Ensure that you specify in the will who should receive specific assets and how they should be distributed.

For instance, you might want to include clauses that immediately transfer ownership of bank accounts and property to designated heirs without the need for probate. This can be done by filing a document in court, and giving copies to your financial institutions.

For example, if you wish for your bank accounts and property to be immediately transferred to your designated beneficiaries, include a provision in your will stating this and file it in court. Provide copies of this document to your banks and financial institutions to prevent your accounts from being locked up and contested in probate court.

Mistake 5: Combining Will and Funeral Instructions

While it seems convenient to include funeral instructions in the same document as your will, it is often the case that the will is not opened until after the funeral. This can lead to confusion and delay in settling the estate.

To avoid this, keep your funeral instructions separate from your will. Ensure that you have clear and explicit instructions, and that they are readily accessible to your family.

Why Hiring a Lawyer is Essential

Many people believe that they can handle their own will and estate planning. However, without specialized legal knowledge, the process can be fraught with errors. Unless you have a law degree and have specialized in estate and wills in your particular state, it would be a significant mistake to do it on your own.

A professional estate planner or attorney experienced in wills and estate planning can help you navigate the legal complexities and ensure that your wishes are accurately reflected in your will. They can also help draft specific clauses that address immediate transfers of assets, executor selection, and asset distribution.

Summary

Proper estate planning is crucial for protecting your legacy and ensuring that your wishes are honored. Common mistakes include failing to draft a will, improperly signing and notarizing the document, choosing the wrong executor, and combining will and funeral instructions. To avoid these pitfalls, consult with a qualified lawyer to draft a clear and legally sound will.

Contact Us

If you need assistance with your will or estate planning, our legal team at Parklin Law LLC is here to help. We offer personalized and professional services to ensure that your estate plan is tailored to your unique needs.

For more information or to schedule a consultation, please contact us at:

Address: 5772 West 8030 South, Unit N206, West Jordan, UT 84081 Phone: 801-618-0699

Take the first step towards a secure future for your loved ones. Don't wait until it's too late to draft a will and plan your estate.