In today’s technologically advanced age, digital assets are just as important as material wealth. Now imagine you pass without ever adding them to your will – they could never reach the hands of the people you love! Mistakes like these are prevalent in estate planning McAllen and can lead to complications, delays, and disputes among your family. At Fryer and Hansen in McAllen, we know how much your loved ones mean to you. That’s why we want to shed some light on these types of errors and provide you with information about how to avoid them.
Failing to Create a Will
Wills are essential, yet many people die without ever having created one. Without a will, your estate will be distributed according to your state’s intestacy laws, which may not reflect your wishes. Your assets may go to unintended beneficiaries, or your loved ones might face delays and legal hurdles in probate court.
The best way to avoid this mistake is to create a will, regardless of age or financial status. A will allows you to name beneficiaries, designate an executor, and ensure your assets are distributed according to your preferences.
Not Updating Your Estate Plan
From marriages to birthdays and even changes to your assets, life is full of surprises – and your estate plan should reflect all of them. However, many people fail to update their documents after these significant events. When they do so, unintended beneficiaries can receive assets or plans that don’t reflect their most up-to-date wishes, which can become a reality.
Make it a habit to review your estate plan regularly, especially after significant life events. Update your will, trusts, beneficiary designations, and other estate planning documents to reflect your current wishes.
Not Naming a Contingent Beneficiary
Contingent beneficiaries are backup beneficiaries on accounts, including life insurance, retirement plans, or other similar assets. If your primary beneficiary is no longer around when you die or cannot inherit, your estate will go to your contingent beneficiary. However, many people need to name a contingent, which can cause delays and additional costs and may lead to a lengthy probate process.
Always name primary and contingent beneficiaries for any accounts or assets that allow it. This ensures that your assets will still go to the right person if something happens to your primary beneficiary without passing through probate.
Overlooking Digital Assets
Social media accounts, digital photos, cryptocurrency, and online banking accounts are all digital assets that should be accounted for in your estate plan. Failing to do so could potentially mean your loved ones may struggle to access or manage them after your death.
To avoid this issue, make it a point to include digital assets in your estate plan. List your digital accounts and explain how they should be handled. You consider creating a digital executor to manage these assets.
Estate Planning McAllen with Fryer and Hansen
Avoiding these common estate planning mistakes can save your family from stress, confusion, and financial strain. By regularly reviewing and updating your estate plan, naming beneficiaries and contingents, planning for long-term care, and accounting for digital assets, you can ensure that your wishes are carried out smoothly.
At Fryer & Hansen, we understand the complexities of estate planning and are here to help you create a plan that protects your family’s future. Contact our estate planning McAllen lawyers today to schedule a consultation or learn more about what we can do for you.