Top Mistakes to Avoid When Creating an Estate Plan

Every adult in Florida should have a comprehensive estate plan in place. With that being said, merely setting up a basic estate plan is not necessarily good enough. You need a customized plan that is truly tailored to meet your needs and your goals. Too many people make avoidable estate planning errors that can cause big problems for themselves and their families. Here, our Fort Lauderdale estate planning attorney highlights the top estate planning mistakes to avoid in Florida. 

Mistake #1: Not Creating an Estate Plan At All

The AARP reports that more than 50% of people do not have a will at all. It is a big problem because it leaves their assets and legacy vulnerable. Without an estate plan, your entire estate will be covered by Florida’s intestacy laws, and the law may not reflect your true wishes. Indeed, if you do not have a proper place in place, the decisions about your property, guardianship of minor children, and even medical care could be left to the courts. An estate plan gives you control and peace of mind. It also reduces stress and potential conflict among loved ones. 

Mistake #2: Assuming that a Will is the Only Document You Need

A will is an important estate planning document. Indeed, it is often the foundation of a comprehensive estate plan. However, the last will does not avoid probate, and it is only one of the tools you need. Quite the contrary, a well-rounded estate plan in Florida may also include trusts, powers of attorney (POA), advance health care directives, and much more. Each document in an estate plan serves a unique purpose. Relying solely on a will is not enough. It could lead to unintended consequences. A trusted Fort Lauderdale estate planning attorney can help you build a plan that best protects your family and achieve your goals. 

Mistake #3: Not Completing and Updating Beneficiary Designations

Broadly defined, beneficiary designations are legally binding instructions on how certain assets, such as life insurance policies, 401(k)s, Roth IRAs, and traditional IRAs, should be distributed upon a person’s death. These designations override what is written in your will or trust. Failing to complete or update them could result in your assets going to the wrong person. Most folks don’t have a beneficiary designation for their checking and savings account, forcing them to go through probate (and therefore through the last will if there is one) to get to the intended beneficiaries.  To avoid this costly mistake, review your beneficiary designations regularly, especially after major life events like marriage, divorce, or the birth of a child. 

Mistake #4: Not Properly Funding Your Trust  

Do you have trusts as part of your estate plan? They can be highly effective for protecting your financial interests and reaching your goals. With that being said, a trust only works if it is properly funded. In many cases, you must retitle assets (from real estate to bank accounts to investment portfolios) into the name of the trust or list the trust as a beneficiary of those assets. What does that mean if you fail to fund the trust? It could result in those assets being subject to probate. In other words, the entire purpose of the trust would be undermined. A Fort Lauderdale estate planning lawyer can help you ensure trusts are properly funded. 

Mistake #5: Failing to Make a Plan for the Risk of Incapacity 

Estate planning in Florida is about more than choosing who gets to inherit what. It also means preparing for the possibility that you could become temporarily or permanently incapacitated. Without proper legal documents in place, such as a durable power of attorney or a super power of attorney, and an advanced health care directive, your family may face significant challenges managing your affairs or making medical decisions on your behalf. The court could even appoint a guardian who does not reflect your values or wishes.

Mistake #6: Not Effectively Communicating With Your Family and Loved Ones

Poor communication is one of the most common estate planning mistakes. Even with a detailed and valid plan in place, failing to inform your family about your intentions can lead to confusion, conflict, or even litigation. It’s important to share where your key documents are stored, who will serve in decision-making roles, and what your goals are. Open and honest discussions can help to ensure that every person who matters is on the same page. The more that your family members and other loved ones know now, the more smoothly everything related to estate planning will go in the future.

Mistake #7: Failing to Update Your Estate Plan to Account for Life Changes

Estate planning needs to change. An estate plan that you set up ten years ago may simply no longer be truly effective for protecting your rights and securing your goals. Major life events such as marriage, divorce, the birth of a child, and the death of a family member can all impact your goals and the effectiveness of your plan. If you do not revise your documents when needed, your estate plan may be outdated. A regular review of your estate plan is recommended. An experienced Fort Lauderdale estate planning attorney can help you ensure that your estate plan is properly updated. 

You Can Trust The Law Offices of Odelia Goldberg for Estate Planning

Estate planning is complicated. If you have a lot of questions about your rights, your duties, and your options, you are not alone. At The Law Offices of Odelia Goldberg, we put people and families first. Estate planning is important. Our Fort Lauderdale, FL estate planning lawyer will invest the time, the resources, and the attention to detail to help you ensure that you have the best plan in place. An initial consultation with our Florida estate planning team is strictly confidential. 

Call Our Fort Lauderdale Estate Planning Lawyer Today

At The Law Offices of Odelia Goldberg, our Fort Lauderdale estate planning attorney is a solutions-focused advocate for people and families. If you have any specific questions about estate planning, we are here to help. Contact us today for a fully confidential consultation. Our firm handles estate planning matters in Fort Lauderdale and throughout all of South Florida, including in Miami, Miami Beach, Boca Raton, Coral Gables, West Palm Beach, Palm Beach Gardens, and Jupiter.  Coral Gables, West Palm Beach, Palm Beach Gardens, and Jupiter.