Estate Planning Mistakes That Can Result in Problems

 Posted on November 14, 2024 in Estate Planning

An estate plan that is well-thought-out and professionally prepared can be an exceptional gift to those you leave behind. Unfortunately, the complexity of estate planning laws, along with the emotional issues associated with estate planning, can lead to mistakes if you do not have professional legal guidance. While most adults believe they should have an estate plan, far fewer actually have one.

The typical reasons for not having an estate plan are a life that is too busy, not knowing exactly where to start, a belief that estate plans are only for the super-wealthy, and an unwillingness to consider one’s own mortality. Yet if you have no estate plan, you risk leaving your loved ones in chaos and having assets go to those you would not have chosen.

If you are considering an estate plan, it is important to have knowledgeable legal guidance throughout the process. An experienced Oakbrook Terrace, IL estate planning attorney from Farooqi & Husain Law Office is ready to help you ensure your loved ones are taken care of in the event of your incapacity or death. Some estate planning mistakes you can avoid include the following:

Attempting to Prepare an Estate Plan on Your Own is Rarely a Good Idea

Once you have decided you need an estate plan, you may think you can simply download a few forms from the Internet, fill them out, and be done. An estate plan requires numerous legal documents specifically tailored to you and your situation, including a will, trusts, power of attorney documents, and perhaps other documents. The potential for making a mistake that could negate the entire estate plan is high, so you should always speak to a highly skilled estate planning attorney.  

Skipping a Power of Attorney for Healthcare and Finances Can Be Disastrous

In the state of Illinois, having a power of attorney for healthcare and finances can be indispensable. With these documents, you can appoint a trusted person to make decisions on your behalf in the event you become incapacitated. If you do not have these documents, your family could face significant challenges when attempting to obtain the legal authority to handle your affairs.   

Making an Estate Plan and Then Neglecting to Update it Can Be Costly

Perhaps you have had an estate plan prepared on your behalf and feel pretty good about having that task over and done. Unfortunately, an estate plan is never a "one-and-done" task. There will be many changes throughout your life that need to be accounted for in your estate plan.

Marriage, divorce, the birth of a child, the acquisition or loss of significant assets, the birth of a grandchild, and so much more can require necessary changes to your estate plan. Revisit your estate plan at least every five years and whenever a change occurs in your life.

Failure to Coordinate Beneficiary Designations with Your Estate Plan Can Cause Problems

If you have a life insurance policy, a retirement account, or certain other types of accounts, they probably have a designated beneficiary. This is beneficial in that these accounts and policies are not required to go through probate. It is important, however, to make sure these beneficiary designations align with your overall estate plan.

Never Assume Joint Ownership of Assets or Bank Accounts is Sufficient

While it can be helpful to have bank accounts and certain property set up jointly (usually with a spouse), with the right of survivorship, it can wreak havoc if the person on those accounts passes without certain provisions in place. If a husband and wife own all assets jointly with the right of survivorship and they are both killed in an accident, the children or other heirs may have a lengthy, difficult court battle ahead of them.

Contact a DuPage County, IL Estate Planning Lawyer

If you are considering estate planning or need to update an existing plan, having an Oakbrook Terrace, IL estate planning attorney from Farooqi & Husain Law Office by your side to provide experienced legal guidance is invaluable. Attorney Naveed S. Husain couples his legal experience with a broad knowledge of Islamic family law and Islamic estate planning.

This provides him with a unique perspective when assisting the Chicago Muslim community. Attorney Ausaf Farooqi is also an experienced estate planning attorney who is ready to help you complete or update your estate plan. Call 630-909-9114 to schedule an appointment to discuss your estate planning needs.