Estate planning is vital as it ensures that individuals can enjoy their assets during their lifetime while also ensuring that their assets are distributed according to their wishes after they pass away. Unfortunately, many people do not receive proper advice when setting up their wills or trusts, leading to their desired asset distributions not being realized after their death.
What are the common reasons that cause an estate plan to be broken?
An estate plan can be broken due to three main reasons: no planning, poor planning, or incomplete planning. No planning, for example, occurs when individuals fail to execute a will, leading to their assets being distributed according to intestacy laws rather than their wishes. Poor planning can occur when individuals seek advice from inexperienced attorneys who do not understand the complexities of estate planning, leading to mistakes like incorrectly setting up trusts for individuals with disabilities. Incomplete planning, on the other hand, can occur when individuals do not account for all their assets in their wills, such as retirement accounts or jointly owned assets.
How can individuals fix a broken estate plan?
To rectify a broken estate plan, individuals can explore options such as an agreement to forego litigation, where beneficiaries and the estate administrator agree on the distribution of assets. Additionally, reformation can be used to modify the language of a will to ensure that assets are distributed correctly, especially in cases involving individuals with disabilities. Seeking legal assistance from experienced professionals specializing in estate planning is crucial to navigating and resolving issues with a broken estate plan effectively.
How can individuals avoid making mistakes in their estate planning from the outset?
To prevent mistakes in estate planning, individuals should consult with professionals specializing in estate planning to ensure their affairs are in order. It is essential to have a clear plan in writing, either through a will or a trust, that accurately reflects the individual’s wishes regarding asset distribution. Professional guidance can help individuals identify and account for all their assets, including those that may not pass through a will, such as retirement accounts or joint assets, ensuring that their objectives are met effectively.