Estate planning plays a crucial role in financial planning. Virginia estate plan allows one to safeguard their family’s interests and make them financially self-reliant in the event of death or incapacitation. However, a survey has revealed that only 42% of American adults have prepared their estate plans. Estate planning law firm Virginia Beach emphasizes the need to have an estate plan to prevent one’s assets from falling into the wrong hands. Moreover, in the absence of a clear estate plan, the family members are more likely to fight over the deceased’s assets.
Estate planning is a complex task that requires the gathering of documents, creating inventories of the assets, accessing the worth of the assets, drafting the provisions, and assigning executors. A simple mistake can lead to complications in the future. Thus, one must seek help from a professional attorney when drafting an estate plan.
In this blog, we have listed a few mistakes people should avoid when creating a Virginia Estate Plan.
Mistake #1 Not having all the required documents
Estate planning is beyond writing a will or trust. To create a robust estate plan, one must have a durable power of attorney, healthcare directive, trust, and much more. The documents one may need to produce for the estate planning depend upon the person’s situation and requirement. Estate planning lawyers review the case and study the particular situation before recommending documents that one would need to collect before preparing an estate plan.
Mistake #2 Naming the wrong executor
In any will and trust, the role of an executor is very crucial. The executor named in the estate plan is responsible for managing and distributing the assets after your demise. Some people choose their partner, children, or other family members as executors, while others prefer naming someone outside the family as executor. The Virginia Code § 64.2-1426 allows one to choose a company authorized to do business in Virginia as an executor and serve as a representative of their assets. When creating an estate plan, one must be careful when naming an executor. One should not take this decision in a hurry.
Mistake #3 Failing to update the estate plan regularly
If you think your task ends after creating an estate plan, you are wrong. From your internal family situations to changes in tax laws, many factors can influence your estate plan. Thus, one must keep their estate plan updated. Your estate plan must reflect the major event in your life like marriage, divorce, birth, or change in wealth.
Mistake #4 Failing to fund a revocable trust
With a revocable trust, one can adequately manage their estate and assets after their death or incapacitation. Besides this, an adequately funded revocable trust helps one avoid the probate process. Virginia Code § 64.2-624 states that with a transfer of the deed, a person’s estate can automatically pass on the trust after their death.
Mistake #5 Not seeking help from Estate Planning Attorney Virginia Beach
The internet has made resources for estate planning readily available. There are plenty of websites and apps offering estate planning solutions to people. However, most of these websites adopt a one-size-fits-all solution. Your estate plan should address your concerns and reflect your circumstances. Thus, it’s always a good idea to hire a professional estate planning attorney virginia beach.