It’s important to take steps in order to prepare for unexpected events in life, including death. Unfortunately, this process is often placed on the back burner in Florida and elsewhere. In addition, when people do actually engage in estate planning, they often make some costly mistakes in the process. Here are some major mistakes that are critical to avoid when planning an estate.
The top estate planning mistake is not creating a will at all. Research shows that half of Americans lack wills, which are designed to spell out how various assets are to be distributed when the estate owner passes away. Ideally, people should create wills when they are young and then update these documents as they age.
Another common estate planning mistake is not creating a power of attorney for a child who is 18 years of age or older. If an adult child falls ill or suffers an accident, the parent cannot confer with the child’s doctor if no health care power has not been created. Likewise, the parent cannot handle the child’s investment decisions or bills without a financial power of attorney in place.
Estate planning is often viewed as a morbid topic, which is why many individuals avoid it. However, creating an estate plan is critical for protecting a one’s assets in the years ahead, as well as ensuring that the needs of his or her children will be met if the estate owner ever becomes incapacitated. An attorney in Florida can help with the process of creating an estate plan that reflects the client’s wishes and best interests long term.