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Don’t Create a Legal Disaster as Your Legacy

06/27/2017

Don’t Create a Legal Disaster as Your Legacy

We are a nation of do-it-yourselfers. With the many helpful videos online, people try their hands on everything from kitchen plumbing to farming. There are many instances where DIY works well, and it’s rewarding to look at your handiwork and say “I did that!” But the same cannot be said for estate planning.

People may have a broad idea of estate planning and feel that they can do it for themselves without paying for legal services. Without the background and knowledge required to draft the documents that cover specific circumstances and the requirements of current probate and tax laws, a DIY estate plan is a recipe for disaster. I see this on a monthly basis in my practice.

The Sabetha Herald notes in its recent article, “Estate Planning pitfalls,” that a DIY-er can make many mistakes. The article points out several of them.

The first issue is having an outdated estate plan, especially a will that has not be updated to reflect that your children are now married and have children of their own. Perhaps you’ve divorced and remarried. Review your estate plan regularly, at least every four years. If you want to revise your will, you can’t just cross out a part of an old will or simply add information and initial the document. You need to go through the same validation process as a new will. A couple of weeks ago I was in Broward probate court on this exact issue.

Another mistake is not coordinating a will and a trust. They should be aligned, so your wishes will be carried out. Along the same lines, many people don’t title their assets correctly and don’t update beneficiary designations on IRAs, 401(k)s, company plans and other accounts.

Failing to name successor or contingent beneficiaries is a common mistake. If you name just one beneficiary on an account and he or she dies, then there’d be no successor to receive the account’s assets. The assets could then go to a person you didn’t want to have them, or they could end up in your probate estate.

A major mistake is not designating an individual to make your healthcare decisions, in the event you become incapacitated. These are known as living wills, medical directives, health care proxies or advance health care directives. A related mistake is relying on an outdated financial power of attorney. Your circumstances or your relationship with that person may have changed, since you signed the document.

Many people don’t think about Medicaid. They wait too long to plan for the costs of nursing home or other long-term care, and then try to apply for Medicaid. This should be addressed long before a person nears the time when such care may be needed.

Because the federal estate tax exemptions are so high, most people don’t worry about estate taxes. However, state estate taxes have far lower thresholds, and most people do have to pay them.

To ensure that you have an estate plan that will achieve your wishes, speak with an experienced estate planning attorney like DANIEL T. FLEISCHER. They will be able to help you minimize your tax liability, make sure that your assets are distributed in the way that you want and save your heirs from having to devote time and resources to fix the unintended consequences of a homemade will.

Do you live in Miami-Dade, Broward, or Palm Beach counties in Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? Call me (954-888-1747) right away for peace of mind. I can help! Please visit www.411probate.com for valuable information.

  • My practice is exclusively estate planning and probate,
  • I have prepared numerous estate plans in 16 years of practice,
  • I have administered estates and trusts through Probate all over Florida,
  • I am a Certified Financial Planner Professional™, and
  • I am here for YOU today and there for your FAMILY tomorrow.

Reference: Sabetha (KS) Herald (June 2, 2017) “Estate Planning pitfalls”

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Why would we recommend D.T.F.? Several Reasons: Your ability to explain complex estate problems, clearly and patiently; your total lack of arrogance and pretense; a strong feeling that you are motivated by what you perceive is best for your client, rather than what would generate the largest legal fees; finally, and importantly, you are a lovely guy. A.C.
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Two words cannot sum up the entire process of creating my “trust.” I enjoyed your attention to detail, your patience of explaining terms and conditions until I understood, also giving me copies to read and understand. Thank you for your suggestions on what was best for “me” but still allowing me to make my choice. Most of all, thank you for thinking of “me.” Wells Fargo said “you were the best” I cannot deny that. Again thank you very much for everything. Anna is an asset or a compliment to the firm. She is warm and very caring. It was great doing business. Thank you.

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