Common Estate Planning Mistakes – and How To Avoid Them

Estate planning does not have to be complicated. But there are several common situations that can create unnecessary difficulty for families.

Having No Plan at All

Without an estate plan, Michigan law and the probate process may determine matters that you could have decided for yourself.

A better approach is to put basic documents in place even if your estate is relatively simple.

Preparing Documents but Never Reviewing Them

A plan created many years ago may name people who are no longer appropriate or may not reflect changes in your family or finances.

A better approach is to review your plan periodically and after significant life events.

Failing to Coordinate Beneficiary Designations

A will does not necessarily control assets such as retirement accounts, life insurance, or accounts with designated beneficiaries.

A better approach is to review beneficiary designations as part of the estate planning process so that they work with, rather than against, the rest of your plan.

Creating a Trust but Failing to Fund It

A revocable living trust can accomplish important goals, but the trust must be properly integrated with your assets and estate plan.

A better approach is to make sure you understand what should be transferred to the trust and what should remain outside it.

Leaving Family Members to Guess

Sometimes the greatest difficulty is not financial. It is uncertainty about what a loved one wanted.

A better approach is to create clear documents, choose the right people to act for you, and communicate important wishes when appropriate.

A good estate plan is not about anticipating every possible event. It is about making thoughtful decisions today so that you and the people you care about have greater clarity tomorrow.