Estate Planning Blunders: All About Avoidance in Virginia

BlundersEstate-planning blunders are costly and common, even among the fiscally prudent. Any number of oversights can leave you vulnerable in the event you become incapacitated. Others can seriously compromise the amount your heirs will inherit when you die.

There are two important dimensions to getting something done right: knowing what to do and knowing what NOT to do. That is especially true when it comes to desiging your estate plan? It takes a great deal of training to know what to do to best plan and structure an estate plan. That’s why you consult competent and experienced legal counsel.

Maybe you’ve yet to start and maybe you’ve been working with an estate planning attorney for some time and piecing together some foolhardy designs. Either way there are some basic types of blunders that can befall anyone not wary enough to look for them.

CNBC compiled a short list of blunders well worth your consideration in a recent article titled “The 5 Biggest Estate-Planning Blunders”, let's call them the Five Easy Pieces:

  1. Picking the wrong people will make the worst of your plans, whether because they are not dedicated, not capable or even not trustworthy. You need to ensure that only the right people hold your durable power of attorney or serve as executor or trustee.
  2. Leaving the wrong assets to your estate rather than passing them outside of probate. For example, do not leave an IRA to your estate. Anything with a beneficiary designation can generally do half the work for you and be passed outside of probate (and outside extra taxation), so long as you use it correctly. This leads naturally to 3:
  3. Failing to name your beneficiaries and keep them updated. With an ex-spouse listed on an IRA, you’ll accidentally leave it to them, and that’s just one poignant example.
  4. Failing to make your end-of-life medical decisions though a health-care directive. This is one of the easiest to put off because it can be amongst the most difficult to think about – incapacity, feeding tubes, and death. However, not having put a decision to paper often means leaving it to the hospital’s discretion or forces your family to decide (and potentially argue).

These are a few (of many) potential blunders and examples of what not to do. There is much to think about of course, and much more NOT to do. In the end, it all depends more on what your actual goals are. One more thing not to do: don’t fail to invest the time to figure out what you ought to do.

You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning.

Reference: CNBC (April 14, 2014) “The 5 Biggest Estate-Planning Blunders

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We've been putting together as many resources as possible so that we can continue to help:

  • If you’re a current client with a signing appointment or a prospective client with a consultation and would prefer that meeting take place in your own home, we can accomplish that with a little bit of pre-planning on our part and with the addition of a laptop, smartphone, tablet or other computer in your home to facilitate this virtual meeting. For those of you that need to sign legal documents, that too can be accomplished with the use of a webcam (FaceTime etc.), so that we can witness and electronically notarize all of your important legal documents.
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Update to our Process

The unprecedented coronavirus pandemic has taken our entire country by surprise. We understand how difficult this time is for America’s businesses and families.  However, we believe it is vitally important that we make every effort possible to continue to offer solutions that avoid disrupting our important partnership with you, your family and friends.  As you know, estate planning is not something that should wait for a more convenient time, therefore the opportunity to address your important goals both during and after this crisis should not wait.  To that end, we have added the option of a ‘virtual consultation’ to our office process.  You will now have a choice of either meeting with us in our office or in the comfort of your own home.