Top 8 Estate and Disability Planning Mistakes Part 2
We hope you enjoyed the first of our two-part series about common estate and disability planning mistakes, and how to avoid them! In today’s Part 2, we will discuss another four of the most frequent errors people make when planning for the future and our tips on how to prevent them.
Estate and Disability Planning
In Part 1 we covered four common mistakes and how to avoid them: Check them out here. What follows are the next four of the most common estate planning mistakes in New York to be aware of:
Mistake #5. Unfunded Trusts
Creating a trust is only half the battle; you must transfer ownership of your assets (such as your home or bank accounts) into the trust for the terms of your trust to control such assets. An unfunded trust is essentially an empty shell that won’t achieve the trust’s objectives such as avoiding probate.
How to avoid this? Once your trust has been created, be sure to consult with your elder law or estate planning attorney about what assets should be transferred into your trust.
Mistake #6. Ignoring Digital Assets
Don’t forget that we are living in a digital age. Neglecting to provide access to online banking, cryptocurrency, social media, and photo storage can leave heirs locked out of important accounts.
How to avoid this? Make sure your legal documents, such as your Power of Attorney, Will and trust provide for your loved one to be able to access your digital assets. Outdated legal documents may not have the most up-to-date language that is necessary for your loved ones to be able to deal with your digital assets. Treat your digital assets the same way you treat your other assets, and specify how they should be handled upon incapacity or death.
Mistake #7. Choosing the Wrong Fiduciary
Picking an executor or trustee based on perceived fairness (for example, your oldest child) rather than financial competence and organization can cause delays and family infighting.
How to avoid this? Use good sense when choosing a fiduciary and ensure it is someone who can and is able to handle the job… and of course, someone you trust.
Mistake #8. Do-It-Yourself Legal Documents
While online templates are cheap, they often fail to account for New York-specific laws or complex family dynamics. Small errors in signing or witnessing can render the whole document invalid.
How to avoid this? Seek professional help from experienced elder law attorneys who know exactly which documents you require and how they should be executed.
At Makofsky Valente Law Group, assisting clients with thoughtful estate and disability planning is what we do every day. With the right guidance, estate and disability planning can be low-stress and provide you with a feeling of comfort and stability knowing that your wishes will be carried out the way you desire. 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!
