Estate planning can be a complex and emotional process, but it’s also one of the most important steps you can take to protect your loved ones and your assets. Unfortunately, many people make common mistakes when creating their estate plans, which can lead to unintended consequences and unnecessary expenses. In this post, we’ll discuss the top 5 estate planning mistakes you need to avoid in New York City.
- Failing to Update Your Estate Plan One of the most common estate planning mistakes is failing to update your plan after significant life events such as marriage, divorce, the birth of a child, or the acquisition of new assets. If your estate plan is outdated, your wishes may not be carried out as intended, and your loved ones may face unnecessary legal battles or tax consequences.
- Not Planning for Long-Term Care Many people overlook the need to plan for long-term care in their estate plans. If you or a loved one require long-term care, the costs can quickly deplete your assets and leave little to nothing for your heirs. Planning ahead can help you qualify for Medicaid benefits, protect your assets, and ensure that your long-term care needs are met.
- Failing to Name Beneficiaries Failing to name beneficiaries for your assets can lead to delays, additional costs, and unintended consequences. For example, if you pass away without naming beneficiaries for your retirement accounts, your assets may be subject to probate, which can be a lengthy and expensive process. Naming beneficiaries for your assets can help ensure that your assets are distributed according to your wishes and avoid unnecessary delays and expenses.
- Not Considering Estate Taxes Estate taxes can be a significant expense for high-net-worth individuals, and failing to plan for them can lead to unnecessary tax liability. In New York City, estates worth over $6.58 million are subject to state estate tax, and estates worth over $12.92 million are subject to federal estate tax. Proper planning can help minimize or eliminate estate taxes and ensure that your assets are distributed as intended.
- Failing to Use Trusts Effectively Trusts can be a powerful estate planning tool that can help you achieve a variety of goals, such as avoiding probate, minimizing estate taxes, and protecting your assets from creditors or lawsuits. Failing to use trusts effectively can result in unintended consequences or missed opportunities. Working with an experienced estate planning attorney can help you determine the right type of trust for your unique situation.
Avoid These Common Estate Planning Mistakes with Help from Nasser Law PLLC By avoiding these common estate planning mistakes, you can ensure that your loved ones are protected and your assets are distributed as intended. At Nasser Law PLLC, our experienced estate planning attorneys can help you create a comprehensive estate plan that meets your unique needs and goals. Contact us today to schedule a consultation and get started on your estate planning journey.