Top 8 Estate and Disability Planning Mistakes: Part 1
Welcome to our two-part series about common estate and disability planning mistakes, and how to avoid them! In today’s Part 1, we will discuss four of the most frequent errors people make when planning for the future and offer guidance on how to prevent them.
Estate and Disability Planning
Getting your ducks in a row for the future is wise and responsible, but even well-meaning plans can go sideways. Here are a few of the most common estate planning mistakes in New York to watch out for:
Mistake #1. Procrastination or No Plan at All
The biggest estate planning mistake is simply not having a plan. Without a will or trust in place, New York’s intestacy laws may determine who inherits your assets, and unfortunately, the law’s default rules may not align with your wishes or family circumstances. (See our recent blog about what happened when Ms. A died unexpectedly without a will.)
How to avoid this? Make a plan. Don’t delay. Life is unpredictable, and having an estate plan in place provides peace of mind knowing that your wishes will be honored.
Mistake #2. Failing to Update Your Documents
Many people treat estate planning as a “one-and-done” task, but life is constantly evolving. Marriage, divorce, births, deaths, health changes, financial changes, and relocations can all affect your estate plan. Documents that were appropriate years ago may no longer reflect your current intentions.
How to avoid this? Review your plan every 3 to 5 years, or after any major life events, such as marriage, divorce, births, or moving to a new state. Keeping your documents current ensures that your plan continues to reflect your life and your wishes.
Mistake #3. Neglecting Beneficiary Designations
Certain assets — such as life insurance policies, retirement accounts, and 401(k) plans — can pass directly to named beneficiaries. These designations typically override the instructions in a will. Failing to name a beneficiary — or forgetting to update one — can lead to unintended consequences.
How to avoid this? Regularly review beneficiary designations to make sure they reflect your current wishes. Also remember to name contingent beneficiaries, who will inherit the asset if the primary beneficiary is no longer living.
Mistake #4. Not Planning for Incapacity
Estate planning is not only about what happens after death — it is also about who will make medical and financial decisions for you if you are alive but unable to do so yourself. Without proper planning, your loved ones may need to petition a court for legal guardianship, which can be time-consuming, expensive, emotionally difficult, and result in a stranger being named your legal guardian.
How to avoid this? Sign vital incapacity planning documents such as a Health Care Proxy and a Durable Power of Attorney. These documents allow you to appoint trusted individuals to make medical and financial decisions on your behalf if you become incapacitated.
What’s the First Step?
Procrastination, outdated documents, missing beneficiary designations, and lack of incapacity planning are common — but they are also entirely preventable with proper guidance.
At Makofsky Valente Law Group, assisting clients with thoughtful estate and disability planning is what we do every day. A well-crafted plan provides comfort, security, and the confidence that your wishes will be respected. If you would like assistance with your estate planning, wills, trusts, or incapacity planning, we would be happy to help. Contact our office by phone or email to schedule an appointment, and stay tuned for Part 2, where we will cover additional estate and disability planning mistakes and how to avoid them.
