There’s so much information available today, good and bad, that it is not always easy to know which is which. Just as we should not perform surgery on ourselves, we are asking for problems if we try to manage our estate plan without professional help. That’s the good advice from the article “Examining three common mistakes of estate planning” from The News-Enterprise.
For one thing, the roles of power of attorney agent and executor are often confused. The power of attorney agent acts in accordance with a document that is used when a person is living. The power of attorney appointment is made by you for someone to act on your behalf, when you cannot do so. The power of attorney expires upon your death.
The executor is a person who you name to handle matters for your estate after your death, as instructed in your last will and testament. The executor is nominated by you but is not in effect, until that person is appointed through a court order. Therefore, the executor cannot act on your behalf, until you have died and a court has reviewed your will and appointed them to handle your estate.
Too many people opt for the easy way out, when it comes to estate planning. We hear that someone wants a “simple will.” This is planning based on a document, rather than planning for someone’s goals. Every estate plan needs to be prepared with the consideration of a person’s health, family relationships, and finances.
Many problems that arise in the probate process could have been prevented, had good estate planning been done.
Another mistake is not addressing change. This can lead to big problems while you are living and after you die. If you are healthy, that’s great—but you may not always enjoy good health. Your health and the health of your loved ones may change.
Family dynamics also change over time. If you only plan for your current circumstances, without planning for change, then you may need to make many updates to your will.
The other thing that will occur, is that your estate plan may fail. Be realistic, and work with your estate planning attorney to plan for the many changes that life brings. Plan for incapacity and for long-term care. Make sure that your documents include secondary beneficiaries, disability provisions, and successor fiduciaries.
Create an estate plan that works with today’s circumstances, but also anticipates what the future may bring.
Reference: The News-Enterprise (Nov. 18, 2019) “Examining three common mistakes of estate planning”
Suggested Key Terms: Estate Planning Attorney, Probate, Last Will and Testament, Executor, Power of Attorney, Agent, Incapacity, Beneficiaries, Successor Fiduciaries