Avoid These Estate Planning Mistakes That Can Lead to Disputes

As a grantor, you want to ensure your heirs do not have to deal with conflict after you die. Estate disputes among family members and other beneficiaries are more than just time-consuming and costly. They could also permanently damage your relationships.

Our compassionate attorneys at Hackard Law are dedicated to ensuring this does not happen to your family. Read on to learn how to avoid these estate planning mistakes that can lead to disputes.

Why Is Planning So Important?

Planning ahead is essential. Not having an estate plan at all allows courts to step in and dictate how your hard-earned assets are distributed. This intervention would likely lead to disputes between your heirs, which is something you probably want to prevent when planning your estate.

You need to do more than simply specify how you want your assets managed after you die. It is also important to prepare for what will happen if you become incapacitated while you are alive. Having a properly executed power of attorney in place means your loved ones would not be burdened with making decisions when you cannot make them for yourself.

Outdated Documents and Errors

Wills and trusts must be periodically updated. Our knowledgeable Hackard Law attorneys recommend reviewing your plan every three years or whenever you experience a significant life change. If you or your heirs get married, divorced, or have children, you should ensure these events are represented in your estate plan. Otherwise, you run the risk of unintended distributions or even excluding rightful beneficiaries.

Additionally, designation errors, such as incorrect beneficiaries on retirement accounts or life insurance policies, could supersede what you planned in your will and lead to disagreements, which you likely want to avoid. You could prevent unclear language, missing signatures, and vague instructions with the right legal counsel from our firm.

Funding Issues, Digital Assets, and Tax Implications

Properly funding a trust is crucial. After all, the trust is only effective if it holds assets. Failing to fund your trust could invalidate it or, at least, lead to distribution disputes. That is why our attorneys advise you to address all assets in your estate plan, including cryptocurrencies and other digital assets, as this is a common oversight that you should avoid if you do not want to cause disputes.

If you are a grantor, you should also ensure tax considerations do not go unresolved. Failing to consider the ramifications of your decisions could leave your heirs with a large tax bill and a smaller inheritance than you planned.

Poor Communication

You should ensure there is good communication at all stages when planning your estate. Failing to share your ideas with beneficiaries would likely lead to misunderstandings. Do your best to avoid resentment and legal challenges by keeping all parties informed.

You also want to choose your executor very carefully, as selecting the wrong personal representative could cause serious problems. You should avoid mismanagement errors, as they could cause arguments between heirs, especially if your trustee is unwilling or unable to properly close your estate as you planned.

Call For Advice To Avoid Estate Planning Errors That Can Cause Disputes

Consulting with one of our Hackard Law attorneys could help you avoid these estate planning mistakes that can lead to disputes. Our team could help you reduce the risk of quarreling beneficiaries when you die.

Contact Hackard Law today and let us guide you through the process. We could be the dependable support you need for your family, now and in the future.