Life is full of unexpected twists and turns, and sometimes, those surprises can impact your estate plan in ways you never anticipated. At Legacy Law Firm, we understand that thinking about the future can be daunting. That's why we're dedicated to guiding you through the estate planning process with ease and clarity. Our goal is to help you understand and avoid common pitfalls that could complicate matters for your loved ones down the line.

Common Estate Planning Mistakes and How to Avoid Them

Mistake #1 - Procrastination: Thinking "It Won't Happen to Me" 

This might be the biggest mistake of all.  The belief that there is always more time seems to be one of the most significant barriers to effective estate planning. Life's unpredictability doesn't discriminate based on age or circumstances. Delaying your estate planning can leave your family unprepared during difficult times.  

Whether you're a young family just beginning to build your life together or someone well into retirement, having an estate plan is imperative to care for your loved ones. An estate plan is the number one thing you can have to ensure your affairs are handled according to your wishes.

Mistake #2 - The DIY Trap: Avoid Legal Zoom

One size does not fit all. While do-it-yourself online forms for estate planning may seem convenient and cost-effective, they often fall short of addressing the unique nuances of your life and assets. North Carolina's laws set forth specific requirements that must be met for a will to be valid. A generic template may not have been created with North Carolina law in mind.

If you modify these DIY forms, you also risk catastrophic consequences. One of the first things I learned in my law school Trusts & Estates class was how one misplaced comma can completely change the interpretation of a Will (don't underestimate the power of the Oxford comma!).

You know where you want your assets to end up, don't let a misplaced comma or missing term of art ruin your estate plan. Estate planning attorneys spend their entire career learning about what not to do and their knowledge will benefit you.

While the cost can vary depending on complexity, creating an estate plan doesn't have to break the bank. Many attorneys (including us) offer flexible payment options and discounts for certain groups, such as active military and veterans.  

If you still are worried about the cost, think of a personalized estate plan as an investment in your family's future peace of mind, ensuring that your wishes are honored, and your loved ones are protected.  

Mistake #3 - Flexibility is Key: Life Changes, and So Should Your Plan 

As you move through life, your estate plan should evolve with you. Major life events such as marriages and divorces, births of children and grandchildren, and acquisitions of significant assets like homes or businesses are just a few of the life changes that require revisiting and updating your will, trust, and other estate planning documents.

Even if you don't think you have experienced any major life changes, you should always review your estate planning documents every 3-5 years. North Carolina and federal laws are constantly evolving, and you want to make sure your estate plan isn't frustrated by changes in the law. An estate plan drafted for a non-taxable estate could saddle your heirs with thousands in tax liability down the road if tax laws changed your estate plan wasn't revised to account for those changes.

It is important to remember that ensuring your estate plan always reflects where you are in life is crucial in maintaining an effective estate plan.

Mistake #4 - Overlooking the Little Things: The Devil is in the Details 

It's easy to focus only on the big picture and forget to consider the smaller, yet equally important aspects of your estate plan.

Assets subject to beneficiary designations do not pass through the probate estate in North Carolina. If you have a named beneficiary on an account, your Will or Trust will not change who receives that asset. This is why it is important to regularly review your beneficiary designations.  

Understanding the implications of the various types of account ownership, the potential impact of taxes, and other financial matters are all critical to avoid unintended consequences of your estate plan. Forgetting about these details can significantly impact the distribution of your assets and the financial well-being of your beneficiaries.

Mistake #5 - Communication: The Importance of Clarity and Accessibility 

A well-crafted estate plan is only as good as the explanations and instructed contained in it.  If your executors and beneficiaries can't make heads or tails of the information in your estate plan, it can feel as useless as having no estate plan.  Clear communication will prevent misunderstandings and conflicts.

Another important thing to remember is to keep your estate planning documents in an accessible place and that someone knows where they are. You don't want them to end up in a complicated situation where they need your estate planning documents in order to access your estate planning documents. Did you have to read that a few times too? Here is how that could happen:

If you keep your estate planning documents in a safe and do not provide the combination to someone, most locksmiths require you to have Letters from the court before they will drill the lock. However, your loved ones can't obtain Letters without having the original copies of your Will which are inside the safe. See how that can be impossible to navigate?

A similar outcome happens when estate planning documents are stored in safety-deposit boxes. Even if you have a key, if you aren't named as a joint owner or TOD beneficiary, banks will not allow you to access the safety-deposit box without Letters from the court. As you now know, you can't obtain Letters without the original will that is inside the safety-deposit box.

Legacy Law Firm is Your Partner in Estate Planning

Don't let these mistakes become your reality!  At Legacy Law Firm, we are more than just legal advisors; we are your partner in planning your legacy. Our experienced team is dedicated to providing you with expertly tailored wills, trusts, and other estate planning documents free of these common mistakes. 

When we draft your estate planning documents, you can be assured that we have taken into consideration everything that makes your life and family unique and have tailored your estate plan to reflect those things.

Contact Legacy Law Firm today to begin the conversation about securing your future and ensuring the well-being of your loved ones. Together, we can prepare you to face the future with confidence.